People think of certain names when someone mentions luxury vehicles. BMW, Audi, Mercedes-Benz, Lexus, Acura, and Bentley are some of the names synonymous with luxury driving, but notice how I didn’t mention Hyundai Motors as one of those names. Indeed, for decades, Hyundai’s reputation has been a high-value brand with modern cars and leading warranties, including the 10-year/100,000-mile powertrain and seven-year anti-corrosion warranty that few other nameplates even try to match.
However, Hyundai has pushed for luxury in recent years, and not just with its Genesis sub-brand. The Hyundai Palisade entered the world consciousness in 2020 as a midsize crossover that was more upscale than anyone previously expected from the company. With the Palisade now well-established and a second generation on the horizon, it’s time to ask whether it is worth searching for a Hyundai Palisade for sale if it qualifies as a luxury SUV? If so, what does it mean for the segment? To answer this, I’ll examine the vehicle and the larger luxury auto market to see where the 2025 Hyundai Palisade fits.
The Demand for Luxury
Even with the new vehicle consumer price index having barely gone down since its all-time high in September 2023, sales for luxury vehicles have recovered nicely from their late-2010s dip. The future outlook is rosy as well; Grand View Research is predicting an average of 5.9% CAGR (compound annual growth rate) in US growth and 6.9% global growth through 2030. When you consider more than half the US light vehicle market is made up of SUVs and crossovers, that’s a lot of luxury SUVs.
There are many reasons people want luxury vehicles. The performance, materials, and technology are almost always superior to ordinary sedans and crossovers, meaning a superior driving experience. A luxury vehicle is also seen as a status symbol and a path to emotional fulfillment, giving owners a visual representation of success. However, those things come at a price, as the average price of a luxury vehicle is around $75,000—at least $11,000 more than the average annual salary. It makes sense that higher-end vehicles would cost more, but plenty of drivers who may not be able to get the best luxury machine at least want to get a sampling of the high life.
That’s where vehicles like the Hyundai Palisade drive into the picture. It aims to offer many of the amenities more famous luxury names want at a much more accessible price point—a starting MSRP of $36,800 on the base trim and $54,100 on the highest package, both well below the luxury average. Several terms have been proposed for this type of vehicle, including entry-level luxury, near-luxury, and mainstream luxury. Is it too daring to say the Palisade is a legitimate luxury three-row crossover? Let’s take a look and find out.
How the 2025 Hyundai Palisade Captures the Luxury Spirit
In the years since its 2020 debut, Hyundai has continued tweaking and upgrading the Palisade, including a significant refresh in 2023. The 2025 Palisade represents the peak of this process, delivering plenty of the goods needed to meet the luxury standard.
I’ll change things up from my usual path and start with an overview of the interior, which presents itself with affluence. Every trim above the base SE has H-Tex or leather-trimmed seats, eight-way power driver and passenger seats with two-way driver lumbar adjustments, heated front seats, second-row captain’s chairs, and a leather-wrapped steering wheel to give everyone a comfortable ride. Upper trims like the new SEL Premium and Limited offer heated second-row seats, ventilated first- and second-row seats, four-way driver lumbar, and a sunroof.
Sweet tech is a must in modern luxury vehicles, and the tech across the 2025 Palisade range is also top-notch. Every Palisade has a 12.3-inch infotainment touchscreen with standard Android Auto and Apple CarPlay, SiriusXM satellite radio, a Wi-Fi hotspot, onboard navigation, traffic flow updates, HD Radio, and dynamic voice recognition. Drivers can connect two devices to the screen simultaneously, and with Rear Seat Quiet Mode, the rear speakers can be muted for passengers to use their media players. You get a 12-speaker Harman Kardon sound system on higher trims, wireless device charging, and a head-up display. An in-car intercom is also available to better communicate with passengers.
Outside the cabin, the Palisade has plenty to call itself luxury, too. High-visibility automatic LED headlights, daytime running lights, and accents are the bare minimum. Step up to the higher trims for LED tail lights to boost rear visibility, roof rails for more cargo space, 20-inch wheels for improved handling, and a hands-free smart liftgate for easy access. Performance-wise, the Palisade has MacPherson front coilover struts and an independent multi-link rear suspension for a smooth, refined drive from the 291-hp V6 engine, which accelerates strongly off the line. HTRAC AWD is available on all Palisade trims to increase traction in poor conditions.
Last but certainly not least, the 2025 Palisade has one of the most expansive driver assistance suites on the market. The standard SmartSense package includes:
- Smart Cruise Control (SCC)
- Blind-Spot Collision-Avoidance Assist (BCA)
- Rear Cross-Traffic Collision Avoidance
- Lane Following Assist (LFA) and Lane Keeping Assist (LKA)
- Safe Exit Assist (SEA)
- Parking Distance Warning – Reverse and Forward
- Driver Attention Warning (DAW)
- Highway Driving Assist (HDA)
- High Beam Assist (HBA)
- Rear Occupant Alert (ROA)
Even more safety tech is available, including forward parking distance warnings, advanced collision avoidance systems, blind-spot monitoring, and a surround-view monitor. I could keep going, but I think I’ve painted a pretty good picture of how the Palisade delivers luxury to its owners.
The Palisade Calligraphy and Calligraphy Night
With seven 2025 Palisade trims, there are different levels of elegance you can achieve depending on your budget. SUV buyers who want the best luxury experience Hyundai can offer should check out the Palisade Calligraphy and Calligraphy Night. Even the biggest skeptic can’t help but feel the luxury when they introduce themselves to the Palisade Calligraphy and discover all the extra amenities.
- Nappa leather upholstery that is stylish and durable.
- An ErgoMotion massaging driver’s seat with air pockets for a custom seating posture.
- A microfiber headliner with a sophisticated look and an easy-to-clean material.
- Heated third-row seats with power reclining so every passenger is cozy.
- An exclusive 20-inch wheel design for an eye-catching statement.
- Rear accent lighting and a special roof-mount stop light design to impress fellow drivers at night.
- Side mirror puddle lights to see potential debris underneath the doors.
- A dual-panel sunroof to control the amount of sunlight.
- Remote Smart Parking Assist (RSPA) to safely park anywhere without needing to be in the car.
- Body-color lower bumpers and door garnish, a satin chrome front grille, and a two-tone steering wheel for the highest style.
The Palisade Calligraphy Night added in 2024 includes standard AWD and “blackout” styling. This means a black gloss paint job with dark accents inside and out, such as the roof rails and door handles, capturing the bold charm of the classic luxury vehicle.
Affordable Luxury From Hyundai
Hyundai isn’t a traditional luxury brand and may never truly position itself as such. For ordinary middle-class Americans who still want to taste luxury, though, the 2025 Hyundai Palisade is about as good as it gets. Don’t believe me? In comparing seven esteemed three-row SUV offerings from rival automakers like the Jeep Grand Cherokee, Ford Explorer, Mazda CX-90, and Honda Pilot, MotorTrend named the Palisade the best of the lot.
The 2025 Palisade’s classy interior, advanced tech, carefully-tuned chassis, and commitment to safety are some ways it nudges into the luxury tier. For trims like the Limited and Calligraphy, I believe no one would bat an eyelash if these vehicles were sold under a “real” luxury name. They have that much to offer at Hyundai’s legendary great value.
