Based upon what I can read on the contract as the font is a bit hard to read, this does appear to just be a leased vehicle as Mike9241 pointed out earlier in this discussion. You also state that you do not intend to keep the vehicle but will turn it back in. You are essentially paying for use of the vehicle as opposed to making loan payments to own the car. Therefore, you don't have any basis in the car.
Assuming this vehicle was just used for personal use and not as part of a business, you would not have any cost basis in this vehicle and the entire amount of the settlement would be considered taxable. Please see the link in my original reply for the treatment of legal fees to determine if they are potentially deductible as it will depend upon how they are listed on your settlement paperwork.
@taxquestionasker85
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