1. A vehicle peripheral observation device comprising a plurality of cameras for imaging an area including a road surface of a vehicle periphery, and an image processor for displaying the images captured using the plurality of cameras on a monitor; the image processor having overhead-image-generating unit for generating an overhead image looking down on the vehicle periphery from above from the images captured using the plurality of cameras, and displaying the overhead image in an overhead image display area of the monitor; and enlarged display unit for generating, when any of a plurality of divided areas set by dividing the overhead image display area is indicated, a plurality of intermediate images of an intermediate size between the size of the indicated divided area and the size of the enlarged display area; executing a process of sequentially displaying the intermediate images beginning with the smallest size; setting a display-position relationship at the start of the process so that the indicated divided area is included in the display area of the next intermediate image to be displayed; and using the image of the indicated divided area as an image to be enlarged, and enlarging the image to the size of the enlarged display area.