Best and worst Hyundai Palisade years (which to avoid)

If you’re shopping for a midsize three-row SUV, knowing the Hyundai Palisade years to avoid can save you thousands in unexpected repair costs. The Palisade burst onto the scene in 2020, quickly earning praise for its upscale interior, powerful V6 engine, and near-luxury driving experience at a family-friendly price. On paper, it seemed like a smart alternative to premium brands such as Acura or Lexus.

The worst Hyundai Palisade years to avoid are 2020 and 2021, both plagued by excessive oil consumption, engine failures, and multiple safety recalls. Early 2024 models also raise concern due to serious valve spring defects that can cause engine damage or fires. In contrast, the best Hyundai Palisade years to buy are 2022 and 2023, which show far fewer complaints, improved build quality, and stronger reliability ratings. If you’re considering a used Palisade, stick with these later model years for a more dependable and worry-free ownership experience.

Why you can trust REREV’s advice on which car model years to avoid: Our car experts look at official data, ask real drivers what they think, and talk to experienced mechanics to make sure our list is useful. This reliable info can make buying a car easier for you. Want to know how we do it? Find out more about our research methodology.

How we rated the best and worst Hyundai Palisade years

Our analysis combines data from multiple authoritative sources to give you the complete picture. We examined NHTSA recall databases covering all Palisade model years, reviewed thousands of owner complaints through Consumer Reports and RepairPal, and analyzed J.D. Power reliability scores for long-term ownership trends.

We also cross-referenced Hyundai Technical Service Bulletins with real owner experiences from major automotive forums to identify patterns the official data might miss. This comprehensive approach helps us separate isolated incidents from widespread problems that could affect your ownership experience.

Most Common Hyundai Palisade Problems

Before diving into each issue, it’s important to understand the overall reliability trends of the Hyundai Palisade. While this SUV delivers luxury-level comfort and technology, its early model years revealed a pattern of costly mechanical and electrical issues that significantly affect ownership satisfaction. The most frequent complaints include high engine oil consumption, valve spring defects in newer models, electrical malfunctions, and a series of safety recalls. Below is a breakdown of each major problem area and how it impacts long-term reliability.

1. Engine Oil Consumption Crisis

One of the most widespread and expensive issues involves excessive engine oil consumption, particularly in 2020 and 2021 models. Many owners reported their engines burning through four to five quarts of oil every 3,000 miles—nearly double the normal rate. When left unchecked, this can lead to complete engine failure and repair bills exceeding $10,000.

For example, a 2020 Palisade Limited owner documented losing five quarts of oil between changes before the engine ultimately required full replacement at around 85,000 miles. Despite numerous reports, Hyundai has not issued an official recall for this specific defect, leaving affected owners to pursue warranty claims individually.

2. Valve Spring Failures in 2024 Models

Newer doesn’t always mean trouble-free. The 2024 Palisade faced a significant recall (24V106) for broken valve springs that can damage the engine block or, in extreme cases, cause fires. The defect can result in sudden engine failure while driving—posing a serious safety risk.

Additionally, a related issue involving the oil pump controller has prompted another recall (23-01-071H-1), as overheating components could ignite under certain conditions. These problems suggest that, even in its redesigned second generation, the Palisade may still face unresolved engineering challenges.

3. Electrical System Malfunctions

Electrical system failures have been another recurring issue for Hyundai Palisade owners, especially in early production years. Common complaints include infotainment screens freezing or rebooting, Bluetooth disconnections, and instrument clusters going dark. Some reports traced these issues to adhesive residue interfering with display connections.

These electrical faults go beyond simple inconvenience. When systems like the backup camera or digital speedometer fail unexpectedly, they compromise safety and driver awareness. Owners frequently report multiple dealership visits for repairs that provide only temporary relief before the problems return.

4. Safety Recalls Affecting Multiple Model Years

Hyundai Palisade models have been hit with a steady stream of safety recalls across nearly all production years. Some of the most notable include:

• Seat belt buckle recall (2020–2025): Buckles may unlatch during a collision, increasing injury risk.
• Trailer hitch wiring recall (2020–2022) Number (22-01-070H): Moisture intrusion can cause electrical shorts and fires.
• Brake booster vacuum leak (2023): Reduces braking performance, increasing stopping distance.
• Windshield adhesion failure (2020): Poor bonding could allow the windshield to detach under pressure.

These recalls highlight ongoing quality control issues that can compromise both performance and safety. While many vehicles have been repaired under warranty, potential buyers should always confirm recall completion before purchasing any used Palisade.

Worst Hyundai Palisade Model Years to Avoid Completely

🔴 2020 Palisade – The Problematic Pioneer

The inaugural U.S. model year brings all the typical first-generation issues, amplified by poor quality control. Beyond the oil consumption problems, 2020 Hyundai Palisades face an unusually high number of recalls—eleven official campaigns covering everything from fire risks to structural failures.

Owners frequently report engine failures before reaching 100,000 miles, often accompanied by expensive transmission repairs. The combination of mechanical problems and poor resale value makes 2020 models a costly mistake.

Bottom line: Skip this year entirely. The money you might save upfront will disappear quickly in repair costs and depreciation.

🔴 2021 Hyundai Palisade – Minimal Improvements

Hyundai made few meaningful changes for 2021, meaning most 2020 problems carried over. The oil consumption issue persists, and new recalls emerged for brake system contamination that can cause complete brake failure.

Interior quality complaints also peaked in 2021, with owners reporting persistent HVAC odors, premature leather wear, and rattling sunroofs that dealers struggled to fix permanently.

Bottom line: Another year to avoid. You’re essentially buying a 2020 with a different model year sticker.

⚠️ 2024 Palisade (Early Production) – Proceed with Extreme Caution

The redesigned second-generation Palisade looked promising until serious recalls hit early production models. The valve spring recall affects engines that can fail catastrophically, while a separate oil pump controller recall covers overheating components that can cause fires.

If you’re considering a 2024, verify that all recall work has been completed and documented. Even then, it’s too early to judge long-term reliability for this redesigned model.

Bottom line: Wait for more reliability data, or ensure any 2024 you buy has completed all recall repairs.

Best Hyundai Palisade Years to Buy

✅ 2022 Palisade – The Sweet Spot

By 2022, Hyundai had worked through most early production issues. Software updates resolved many electronic glitches, and the oil consumption problem became far less common. J.D. Power rated the 2022 Palisade as “Above Average” for reliability—a significant improvement over earlier years.

The 2022 model also benefits from improved interior materials and better build quality overall. Most importantly, the recall frequency dropped dramatically compared to 2020-2021 models.

Why it works: You get the mature first-generation design with most bugs fixed, plus you’re still covered by substantial factory warranty protection.

✅ 2023 Palisade – Peak First-Generation

The 2023 model represents the best of the first-generation Palisade. Hyundai added Highway Driving Assist II, refreshed exterior styling, and improved interior materials. Reliability complaints dropped to their lowest levels, and resale values remain strong.

More importantly, the 2023 model year shows the lowest rate of major mechanical problems. Most issues are minor fit-and-finish items rather than the expensive engine or transmission failures that plagued earlier models.

Why it works: This is as refined as the first-generation gets. You’re buying a known quantity with a proven track record.

Superior Alternatives to Consider

If Palisade reliability concerns have you second-guessing, several competitors deliver similar luxury with better long-term dependability.

Kia Telluride – The Reliable Cousin

Built on the same platform as the Palisade, the Telluride somehow avoids most of the Hyundai’s problems. J.D. Power gives the 2023 Telluride an 83/100 reliability score, higher than any Palisade year. Resale values are excellent, with KBB predicting 47% retained value after five years.

The Telluride did have one notable recall for overheating front seat motors that could cause fires, but this affects far fewer owners than Palisade’s engine issues. Any 2021-2023 Telluride makes an excellent choice, assuming the seat motor recall has been addressed.

Best years: 2021-2023 models offer proven reliability with mature features.

Toyota Highlander – The Dependability Champion

Toyota’s reputation for bullet-proof reliability extends to the current Highlander. The 2021-2022 models represent peak value, offering the refined post-redesign experience without paying new-car prices. The Highlander also offers hybrid variants for better fuel economy.

Maintenance costs run about 20% lower than the Palisade over 10 years, and resale values consistently rank among the best in class. If long-term dependability matters more than flashy features, the Highlander delivers.

Best years: 2021-2022 post-redesign models balance reliability with modern features.

Honda Pilot – The Practical Choice

The 2020-2022 Honda Pilot offers proven V6 reliability with lower repair frequencies than most competitors. CarEdge estimates about $7,400 in total repair costs over 10 years—well below the segment average.

While the Pilot lacks some luxury touches found in the Palisade, it makes up for it with rock-solid mechanical dependability and strong resale values. For families prioritizing reliability over premium materials, it’s hard to beat.

Best years: 2020-2022 models with the proven V6 drivetrain.

The Real Cost of Ownership

Buying the wrong Palisade year can be expensive beyond the initial purchase price. Early models (2020-2021) face annual repair costs averaging $800-$1,000 due to engine and electrical problems. These same years also depreciate faster, losing 35-40% of their value within three years.

Compare that to 2022-2023 models, which see annual repair costs closer to $550 and retain about 70% of their value over the same period. The math is clear: spending more upfront for a reliable model year saves money long-term.

If you’re considering any 2020-2022 Palisade, budget for an extended warranty. The peace of mind is worth it given the potential for expensive engine repairs.

Is the Hyundai Palisade worth buying?

Avoid completely: 2020 and 2021 Palisades present too many risks for most buyers. The combination of engine problems, safety recalls, and poor resale values makes these years poor investments.

Proceed with caution: Early 2024 models need all recall work verified before purchase. The redesigned second-generation shows promise, but it’s too early for long-term reliability data.

Best choices: 2022 and 2023 Palisades offer the best balance of features, reliability, and value. These years give you the luxury and technology you want without the major mechanical headaches.

Smart money play: A certified pre-owned 2022 Palisade SEL can cost $6,000-$8,000 less than new while maintaining warranty coverage. You get luxury SUV features with reduced financial risk and known reliability.

Remember, buying a reliable SUV is about more than just the monthly payment. Choose wisely, and your family hauler will provide years of dependable service instead of costly surprises.