The 2020 Palisade's 3.8L Lambda II V6 (shared with the Kia Telluride) suffers from a catastrophic engine failure issue tied to piston/bearing defects, making it a high-risk used buy despite otherwise solid construction. Transmission cooler leaks and failed motor mounts are secondary concerns that pale compared to the engine grenade potential.
Catastrophic Engine Failure - Piston/Bearing/Connecting Rod Damage
Occasional · high severityTypical onset: 40,000-90,000 mi
Symptoms: Metallic knocking or rattling from engine bay, especially on cold start, Check engine light with misfire codes (P0300-series), Metal shavings in oil during changes, Sudden loss of power or complete engine seizure, Oil consumption increasing rapidly
Fix: Complete engine replacement or rebuild required. Short block replacement is 18-24 labor hours; full rebuild with machining adds another 8-12 hours. Hyundai extended warranty to 10yr/100k on some VINs, but coverage is inconsistent. Many shops won't touch rebuilds—just swap in reman or salvage engine.
Estimated cost: $8,000-15,000
Transmission Oil Cooler Line Leaks
Common · medium severityTypical onset: 50,000-80,000 mi
Symptoms: Red transmission fluid pooling under vehicle, usually passenger side, Transmission overheating warnings on dash, Slipping or delayed shifts after extended driving, Fluid level dropping between services
Fix: Cooler lines crack where they attach to the radiator or transmission. Replace both lines and flush transmission fluid. 2-3 labor hours. Sometimes the cooler itself needs replacement if debris contaminated the system (add 1.5 hours).
Estimated cost: $600-1,200
Failed Transmission Mounts
Common · low severityTypical onset: 60,000-100,000 mi
Symptoms: Clunking during acceleration or deceleration, Excessive vibration at idle in Drive, Transmission 'thunk' when shifting into Reverse or Drive, Visible sagging or tearing on mount rubber during inspection
Fix: The passenger-side transmission mount fails most often due to weight and torque stress. Replace both front and rear trans mounts as a set. 2.5-3 labor hours with subframe access.
Estimated cost: $450-750
Windshield Wiper Motor Failure
Occasional · medium severitySymptoms: Wipers stop mid-stroke or won't return to park position, Intermittent wiper operation or complete failure, Burning smell from wiper motor area, Wipers running slower than normal speed settings
Fix: NHTSA recall 22V-354 covers some VINs, but many fall outside recall parameters. Wiper motor assembly replacement requires cowl removal. 1.5-2 labor hours. Check recall status first—free if covered.
Estimated cost: $350-600
Side Curtain Airbag Deployment Issues
Rare · high severitySymptoms: Airbag warning light illuminated, No obvious crash damage but airbag light persists, Codes related to curtain airbag circuit resistance
Fix: Recall 22V-772 addresses curtain airbags that may not deploy properly. Requires harness inspection and possible airbag module replacement. Covered under recall—verify VIN eligibility before paying. Dealer-only repair, 2-4 hours depending on findings.
Estimated cost: $0 (recall) or $1,200-2,000
Fuel Filter Clogging (Premature)
Occasional · low severityTypical onset: 70,000-110,000 mi
Symptoms: Hesitation or stumbling during acceleration, Hard starting after sitting overnight, Loss of power under load, especially uphill, Check engine light with fuel trim codes
Fix: In-tank fuel filter assembly clogs earlier than expected, possibly from ethanol fuel deposits. Requires fuel tank drop. 2.5-3 labor hours. Replace with OEM filter/pump assembly—aftermarket units fail quickly.
Estimated cost: $500-900
Hard pass unless you get ironclad proof of engine recall completion or recent engine replacement—the catastrophic failure risk outweighs the nice interior and warranty reputation.
AI-assisted summary drawn from NHTSA recall data, our labor-times database, and platform knowledge. Not a substitute for a pre-purchase inspection on a specific vehicle.