Used Hyundai Palisade 1st Gen (2020-2025): Buyer's Guide

The 2020 Palisade has 195 NHTSA complaints on file. The 2021 has 6 active recalls, more than any other year in the generation. The 2023 has a completely redesigned interior, standard rear side-impact airbags, and a better infotainment system. Same nameplate. Same engine. Same body shape. Very different odds of a headache.

This guide covers the first-generation Hyundai Palisade, model years 2020 through 2025. The 2026 is a full redesign on a new platform with a new engine. If you're shopping used Palisade, you're shopping this generation. The goal here is to help you pick the right year, avoid the known traps, and walk into a dealership knowing exactly what to check.

This Generation at a Glance

The first-generation Palisade launched in the US for the 2020 model year as Hyundai's flagship three-row SUV. It shares its basic architecture with the Genesis GV80 and competes directly with the Kia Telluride, Honda Pilot, and Toyota Highlander.

The generation runs 2020-2025. Hyundai did a meaningful mid-cycle refresh for 2023: new front and rear styling, a redesigned dashboard and gauge cluster, a larger 12.0-inch infotainment screen (up from 10.25 inches), standard rear side-impact airbags, heated third-row seats, and upgraded 15-watt wireless charging. The powertrain was not touched.

All 2020-2025 Palisade models use the same engine and transmission. The mechanical package does not change across the generation.

See current listings and pricing at /market/hyundai/palisade.

Powertrain and Trim Breakdown

3.8L Lambda II GDI V6: What Owners Love

There is one engine. Every Palisade sold between 2020 and 2025 has the same 3.8L naturally aspirated V6. Owners consistently praise the engine's pull at highway speeds and towing feel. The 291-hp output puts it near the top of the segment for naturally aspirated three-row SUVs. The 8-speed automatic is generally smooth once it learns your driving habits, and the transition to highway cruise is fluid.

For buyers who prioritize simplicity, the single-engine lineup is actually a feature. No choice fatigue. No research needed on turbo vs. naturally aspirated reliability trade-offs. One engine, and the community has six years of data on exactly how it behaves.

3.8L Lambda II GDI V6: The Oil Consumption Problem

The 3.8L Lambda II is a direct-injection engine (GDI). Direct injection means fuel is sprayed directly into the cylinder rather than the intake port. The trade-off: intake valves don't get washed with fuel, so carbon deposits build up over time. Those deposits affect combustion efficiency and can accelerate other wear.

The more serious issue is piston ring sticking. Owners and forum members on palisadeforum.com have documented a pattern across the 2020-2023 years: oil consumption that starts subtle (a quart every 3,000-4,000 miles) and worsens. In documented cases, some engines burned a quart every 1,000 miles by 50,000-70,000 miles. A handful of owners with high-mileage units hit full engine failure between 70,000 and 90,000 miles, past the 5-year/60,000-mile basic warranty but within the 10-year/100,000-mile powertrain warranty for original owners.

Hyundai issued TSB 23-EM-008H, which establishes a formal oil consumption test procedure for dealers. The protocol involves an oil change, sealing the dipstick and drain plug, and measuring oil loss after 1,000 miles. Results above a certain threshold trigger warranty-covered repair. If you're buying used, ask for service records showing the oil change history. Gaps in service records and evidence of deferred oil changes significantly increase the likelihood of having an affected engine.

Symptoms to watch before buying: a faint burned-oil smell from the exhaust on cold starts, a thin blue haze on startup that clears after a minute, or rough idle with occasional misfires. The misfires in severe cases trace to oil-soaked spark plugs, particularly in the rear cylinder bank.

The 2020-2021 Palisade models are the most frequently cited in oil consumption complaints. The 2022 shows reduced but still present reports. By 2023, the reported frequency drops significantly, though the engine architecture is unchanged. Whether that reflects improved manufacturing quality or simply fewer high-mileage examples in circulation is debated on the forums.

HTRAC AWD System

HTRAC is Hyundai's torque-vectoring all-wheel-drive system. It actively distributes torque front to rear and left to right. For daily driving, the difference over FWD is modest on dry pavement. In snow or rain, the difference is significant.

HTRAC is available as an option on every trim level. It adds approximately $2,000 to the purchase price when new, and AWD examples command a premium on the used market. Forum consensus is that HTRAC adds no meaningful reliability concerns of its own. The transfer case and rear differential have clean records, and owners in high-mileage territory have not reported AWD-specific failures at any notable rate.

If you're in a snow climate, pay the premium. If you're in the Sun Belt, FWD is fine and saves a couple hundred dollars in fuel per year.

Transmission

The 8-speed automatic has generated a consistent stream of forum complaints that don't rise to the level of recall-worthy failures but show up repeatedly. The most common: harsh downshifts in first and second gear, particularly when accelerating from a low-speed roll in stop-and-go traffic. A second pattern is delayed engagement when pulling away from a stop, especially cold. PalisadeForum members have reported both symptoms going back to 2020 models, and the symptoms appear on AWD and FWD examples.

Hyundai has addressed transmission shift quality through several software updates over the years. Some owners report improvement after dealer TCM reprogramming. Others report the updates made no difference. Owners who've had transmissions rebuilt or replaced after hard failures are rare, but the forum thread "Palisade transmission dropping gears" runs across multiple model years and has received hundreds of replies.

Trim-Specific Notes

The first-generation Palisade launched with four trim levels: SE, SEL, Limited, and Calligraphy. Hyundai added the XRT (off-road appearance package) in 2023 and an SEL Premium tier in 2025.

SE: Perfectly livable, but you get a cloth interior, a manual driver seat adjustment, and an 8-inch screen on the 2020-2022 models. Most shoppers looking at a used Palisade will find an SEL at a similar price point and should take it.

SEL: The sweet spot for most buyers. H-Tex holds up well to kids and dogs, the power driver seat matters on long drives, and the captain's chairs in the second row give passengers actual space. If you want 8-seat capacity, the SE or optioned SEL bench is your path.

Limited: The first trim where you get truly premium seating surfaces and power-adjustable second-row captain's chairs. That power second-row feature is worth understanding before you buy (see the inspection checklist).

Calligraphy: The top trim adds Nappa leather, the Remote Smart Parking Assist feature, and a Bose premium audio upgrade. The Calligraphy Night (added 2023) adds dark chrome exterior elements. Resale on Calligraphy is strong; don't expect a bargain on used examples.

XRT: Added in 2023, the XRT is an appearance package, not a mechanical off-road upgrade. It gets dark exterior trim and 18-inch alloys. No lift, no off-road tires, no skid plates. It looks the part but doesn't change the on-road capability.

Which Model Years to Target

Avoid 2020 and 2021 if you can. The launch year had the highest complaint volume and established the oil consumption pattern. The 2021 has more recalls than any other year in the generation, including the brake fluid contamination recall (21V840000) where contaminated fluid at the assembly plant reduced braking effectiveness. These aren't unfixable problems, but they're concentrated in those two years.

2022 is acceptable with verification. The tow hitch fire risk (recall 22V633000) involved moisture accumulating on the hitch harness module circuit board causing an electrical short and potential fire. If you're looking at a 2022, confirm recall completion before purchase. Recall 22V353000 (instrument cluster assembly) caused the high-beam indicator to malfunction. Also verify that one.

2023 is the sweet spot for most buyers. The facelift brings a meaningfully better interior and infotainment experience. The brake booster recall (23V415000) required diaphragm replacement on some 2023 units due to increased pedal effort. Check the VIN before buying.

2024 and 2025 are the cleanest years. The 2024's valve spring recall (24V106000) affected only 4,245 vehicles produced between August and October 2023. If the VIN clears that recall, the 2024 is a strong choice. The 2025 has the fewest recalls in the generation and comes with all the facelift benefits.

Two recalls that affect the entire 2020-2025 production run have been issued recently and may not yet be completed on every vehicle: recall 25V607000 (seat belt buckle assemblies in driver and passenger positions) and recall 26V034000 (curtain airbags for third-row occupants may not deploy correctly in a crash). Check any Palisade you're considering against its VIN through /tools/recall-lookup.

Pre-Purchase Inspection Checklist

All Years

• Run the VIN through /tools/recall-lookup first. The seat belt buckle recall (25V607000) and curtain airbag recall (26V034000) span all 2020-2025 models and may be open on the vehicle you're looking at.
• Start the engine cold. Sit and listen for 5 minutes. Any blue smoke at startup that doesn't clear within 30 seconds is an oil consumption flag.
• After the engine reaches operating temperature, smell the exhaust. A faint burned-oil smell is not normal.
• Pull the oil dipstick. Milky or frothy oil means coolant intrusion. Black, gritty oil means extended drain intervals.
• Check the valve cover area and around the front of the engine for weeping oil. The Lambda II has known valve cover gasket seepage on higher-mileage units.
• Ask for every service record. The oil consumption issue tracks with deferred maintenance. If records show oil changes spaced wider than 5,000 miles, inspect the engine more closely.
• Connect an OBD-II reader. Misfire codes on any cylinder, especially P030X codes for rear cylinders, are a red flag for oil-soaked plugs.

2020-2022 Specific

• Confirm recall 22V633000 (tow hitch fire risk) is closed if the vehicle is equipped with a tow hitch harness. Ask the dealer to pull the completion record.
• For 2022: verify recall 22V353000 (instrument cluster) was completed by checking the dash's high-beam indicator against the actual headlight state.
• For 2021: ask about recall 21V840000 (brake fluid). Verify the brake fluid was replaced under the recall.

2023 Specific

• Check for recall 23V415000 (brake booster). Test the brake pedal effort on a cold car. Pedal that requires notably more force than expected warrants a dealer inspection before purchase.

2024 Specific

• If the VIN falls within the August-October 2023 production window, verify recall 24V106000 (valve springs) was completed. The remedy is engine sub-assembly replacement at no charge.

Power Seat Trims (Limited and Calligraphy)

• The power second-row captain's chairs and power third-row seats lack sufficient anti-pinch protection. NHTSA complaints going back to 2021 document adults and a child being trapped or injured by these seats. A software update is available via an over-the-air BlueLink update or at a dealership.
• Confirm the OTA update has been applied. Ask the dealer to verify in the vehicle's software version history.
• Operate every power seat movement yourself. Any seat that moves erratically, doesn't stop when commanded, or folds without a clear activation input warrants closer inspection.

Transmission

• Drive the vehicle in stop-and-go traffic. Deliberate 5-10 mph pulls from near-stop should be smooth. A hard lurch or jerk on engagement in first or second gear is the known transmission harshness complaint.
• On a cold morning if possible, note the first 3-5 gear changes. A significant hesitation before the car moves from a stop is the delayed-engagement symptom.

Running Costs

The Palisade takes 5.3 quarts of 0W-20 oil per change. If you're monitoring consumption, buying a case of oil and tracking usage between changes is worth the peace of mind. A quart every 3,000 miles starts to add up.

Spark plugs are iridium and last to 60,000 miles under normal use, but oil-consumption engines soil plugs faster. If you're buying a high-mileage example with a history of oil consumption, budget for a plug inspection at purchase.

The 8-speed automatic recommends fluid replacement at 60,000 miles under Hyundai's severe-duty service schedule. Most owners skip this. If the transmission shows the known rough-shift complaint, a fluid flush and filter inspection is a low-cost first step before pursuing a TCM reflash.

HTRAC AWD adds transfer case and rear differential fluid changes. Both run on long intervals but are often skipped by previous owners.

Premium fuel is not required. The Lambda II is rated for regular unleaded. Some owners report marginally smoother power delivery on mid-grade, but the EPA ratings are for regular.

FAQ

Is the 1st gen Hyundai Palisade 3.8L V6 reliable? The 3.8L V6 is capable and powerful, but a meaningful subset of 2020-2022 examples developed excessive oil consumption, with some engines failing between 70,000 and 90,000 miles. The 10-year/100,000-mile powertrain warranty for original owners provides protection, but used buyers lose this coverage. A pre-purchase oil consumption check and full service history review are essential steps before buying.

What year Palisade should I avoid? The 2020 and 2021 model years have the highest NHTSA complaint counts and the most recalls of the generation. The 2020 has 195 documented complaints. The 2021 has 6 recalls including a brake fluid contamination recall. Both years carry elevated oil consumption risk. Unless the price reflects the risk and you can verify warranty coverage, target 2023 or later.

What year Hyundai Palisade is the best to buy used? The 2023-2025 range is the strongest buy. The 2023 brings a fully refreshed interior and infotainment without any powertrain changes, so you get a meaningfully improved driving experience with a well-understood mechanical package. The 2024 and 2025 have the fewest recalls in the generation. The 2025 is the cleanest year of the generation, though it will carry a price premium accordingly.

Which Palisade trim is worth buying? The SEL is the practical sweet spot. It adds the power driver seat, H-Tex seating surfaces, and captain's chairs over the SE without the price jump to Limited. For families who prioritize comfort on long drives, the Limited's heated-and-ventilated front seats and power second-row chairs are worth it, with the caveat that the power seat safety update should be confirmed before purchase.

How long does the Hyundai Palisade first generation last? Owners with healthy engines and regular maintenance are reporting 150,000 to 200,000 miles without major mechanical issues. The catch is that a meaningful number of engines with documented oil consumption histories haven't made it to 100,000 miles without intervention. The 10-year/100k powertrain warranty is the backstop for original owners. As a used buyer, verifying service history and running an oil consumption check at purchase protects you from inheriting an engine already on a downward trajectory.

Bottom Line

The 2023-2025 Palisade is the one to buy. The facelift meaningfully improved the interior, the recall count drops with each year, and the oil consumption risk appears lower in post-2022 production. Target a 2023 SEL or Limited with AWD, confirm the brake booster recall is closed, and verify the power seat OTA update on Limited and Calligraphy trims.

Run every VIN through a recall check before setting foot in the dealer. The seat belt buckle and curtain airbag recalls (25V607000 and 26V034000) cover every single model year of this generation and may be open on any given used example. CarScout members can set alerts on specific Palisade years and trims at usecarscout.com to track when the right combination of year, trim, and price hits the market.

Data sourced from NHTSA recalls database (campaigns 19V802000, 21V840000, 22V353000, 22V627000, 22V633000, 23V180000, 23V415000, 24V106000, 25V291000, 25V607000, 26V034000), EPA fuel economy data, Hyundai TSB 23-EM-008H, and real owner experiences from palisadeforum.com, Autoblog, Consumer Reports, and BobIsTheOilGuy forums. See the full Hyundai Palisade market data for pricing and inventory.