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My 2021 Hyundai Palisade Needs A New Engine and Hyundai Says They Won’t Cover It Because I Was 2,000 Miles Over For an Oil Change

What happens when a 2021 Hyundai Palisade has an engine failure and is still under the factory warranty? It's covered if you are the first owner, but what happens to a customer if they are the second owner? Here is what all Hyundai owners need to know. 
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Author: Denis Flierl
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"I drove my 2021 Hyundai Palisade into the dealer for an oil change, and now, after they changed the oil, the car is shaking violently." 

That is what happened to Cat Flanagan (@cflanagan1991), who shares her dilemma in her TikTok video. Her experience may resonate with other Hyundai owners, as she was told she needs a new engine, but Hyundai refuses to cover it under warranty. Here is what all Hyundai owners need to know.

First, let's learn about Cat's story.

She says, 

"I am so over Hyundai's shenanigans. I drove my car to the dealership, and no warning lights were on or anything to indicate that anything was wrong with my engine. I was there to get a routine oil change, albeit it was late. I knew that it was late."

"So, I get a call an hour later that my Palisade needs a whole new engine. They said Hyundai would not cover it because I was 2,000 miles over on my oil change." 

Cat went to Hyundai, and she's going to file a case.

"Well, a week later, they need confirmation that my engine is messed up.  So I had to pay the dealer to tear down my engine and send something to Hyundai, and they did that." 

The Dealer Tears Down Her Engine

"I don't understand why I had to pay Hyundai to tear down my engine. They would reject my claim anyway because it was 2,000 miles over. So, I picked up my car, got my keys, and started my car, which was violently shaking. It was making an awful rattling noise."

"I put the car in reverse, and it was un-drivable. It sounded like my engine was going to fall out. Now it sounds like I need a new engine."

The Palisade's Engine Was Fine When She Took It To the Dealer

"When I took my car to the dealer, it did not sound like that; it was not doing that. I could drive my car anywhere before that. I would have freaked out if it was doing that."

"Now, after three or four weeks of getting nowhere with Hyundai, I picked up my car, and I will figure this out. So, now the car I could drive into the dealer that just needed an oil change needs a new engine, and it's un-drivable. So now I don't know what to do."  

Cat says, "However, later, I discovered I was not 2,000 over. I was over my 5,000 scheduled old change by the dealer, but my car manual says 7,500 is the recommended oil change interval."

The Dealer Has Done the Routine Oil Changes

"They've done my oil changes for two years (since I bought the car), so they have all of the records, which show me going in at a consistent 3 months, which consistently was 5,000 miles."

What is Hyundai's New Car Warranty? 

If you are the original owner, Hyundai's powertrain warranty is 10 years or 100,000 miles. The original owner is the first retail buyer of the vehicle.

Cat thought her Palisade was covered under warranty because she has less than 100,000 miles on her car. However, she's the second owner. 

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"I thought the same, but I am the second owner. Even though we bought from the dealership, the warranty is limited to 60,000 miles," she says.

"When I bought the car, the dealer failed to tell me I don't have the 100k warranty, but instead, I have a 60k second owner warranty. They told me that after they tore my engine down and rejected my claim."

Cat concludes, "I am finding an attorney because they are refusing to work with me, and they keep telling me to go to Hyundai, but Hyundai is saying it's a dealership issue."

What is Hyundai's Second Owner Warranty?

Hyundai says the powertrain warranty is transferable to a second owner but with some limitations. 

Second owner

  • If the vehicle is sold within the 10-year/100,000-mile warranty period, the second owner gets 5-year/60,000-mile coverage. The second owner receives most of the same protections as the original owner. 
  • The warranty is valid for the remainder of the 5-year/60,000-mile period, whichever comes first. 

How to update owner information 

  • If you are the second or subsequent owner of a Hyundai, you can complete the Owner Information Change Card in the front of the owner's handbook. This card allows you to update your contact information and ownership status with Hyundai, ensuring that you receive important warranty and recall information.

Warranty coverage

  • Hyundai's warranty covers the repair or replacement of defective parts and accessories due to factory workmanship or material. 

How often does Hyundai recommend an oil change in a 2021 Palisade?

According to Hyundai recommendations, a 2021 Palisade should get an oil change every 7,500 to 10,000 miles if using full synthetic oil, while conventional oil may require changes more frequently at around 3,000 to 5,000 miles intervals. 

Final Thoughts and Questions for Hyundai Owners

Cat was likely using regular oil, not synthetic oil, and she was at 7,000 miles when she took her Palisade in for the oil change. 

There is no way to prove that the Hyundai dealer made a mistake when changing the oil in Cat's 2021 Palisade. But now she needs a new engine.

Because she is the second owner, her warranty does not cover the engine failure since she is now over 60,000 miles. So, she is responsible for any major engine repairs. It's important to note that the warranty covers the repair or replacement of defective parts and accessories due to factory workmanship or material, but not for issues that arise due to owner neglect or misuse. 

The Hyundai salesperson should have told her about the 5-year/60,000-mile warranty period for second owners when she bought the Palisade. The dealer did, however, have it in writing when she signed the sales paperwork. So, now she's liable for the engine failure. 

How About You?

Have you had a Hyundai Palisade or another Hyundai model have an engine that needed to be replaced? Your experiences and insights are valuable to our community. Click the red Add New Comment link below and share your story.

Check out my 2025 Toyota RAV4 storyI Just Bought a 2025 Toyota RAV4, and It Has the Most Useless Compartment On the Console I’ve Ever Seen, Toyota Is It For McDonalds Dipping Sauces?

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Cat Flanagan

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Comments

Donna Layne (not verified)    March 7, 2025 - 8:13AM

I changed Hyundai dealerships for the regular service of my Santa Fe. They each told me different mileage intervals for oil changes. When I asked why the manual had a different number, I was told the manual was intended for U.S. owners and I was in Canada with different driving conditions, etc.
I mailed Hyundai and asked for clarification as I didn't want to void my warranty. They never answered.

Pete20602 (not verified)    March 7, 2025 - 8:34AM

Actually, Hyundai is not paying because the owner is white. Hyundai is firmly committed to DEI and a privileged white girl can easily afford to replace the engine.


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John Colin Crolly (not verified)    March 7, 2025 - 8:43AM

I had a similar experience. Except we were not over on an oil change. We had a 2017 Elantra we got maintenance for religiously. That mechanic mailed over his records but Hyundai dinged me for 2 missing ones I did while out of town.
They demanded 2 $300 tests to confirm the problem, which they said would not be paid if they needed to replace the engine. They backed out on that. Then there was another $700 in 'filters' that they charged us and they refused to get a replacement for most of the time. Almost $2000 for warranty work. Love their cars. Hate their service and people.

Jerry (not verified)    March 7, 2025 - 8:57AM

I had a crack in the plastic molding on the rear bumper of my Palisade that should have been covered under warranty as the car had only 48k miles. The dealer said it appeared the bumper had been hit and this resulted in the crack so it was not covered. What they pointed to was a spot that tar had been removed. Seems to me that they find a way out whenever possible.

Ravi S Kosgi (not verified)    March 7, 2025 - 9:00AM

I am the first owner of a 2015 Sonata with about 80,000 miles and an increased oil consumption. Took it to the dealership and they confirmed the problem. However, they turned in what ever records they found in my glove compartment to Hyundai, with out my permission or confirming if that was all the records I had. Hyundai comes back saying the records indicate a maintenance neglect and they cannot replace the engine. They didn't even bother to find out if I had other records anywhere else. I have a feeling my records were stolen. The 100000 mile warranty is a scam.

Jim (not verified)    March 7, 2025 - 9:15AM

Hyundai entices you with a decent warranty for the simple fact that they hope you don't figure out their cars are junk. My mother in laws, tucson almost killed her a few years ago when she had an engine failure on the highway at 25,000 miles, took the dealer nine months to get her car back to her. I had a Hyundai Genesis 5.0 r-spec. Great car, But when on its third transmission, I decided I had enough at sixty thousand miles! No more korean cars for me!

Brian (not verified)    March 7, 2025 - 9:29AM

I went through a very similar experience with a 2013 Hyundai Elantra coupe. I bought it “certified pre owned” from a Hyundai dealer with 20,000 miles as a prior lease vehicle. I bought the vehicle under the understanding that the 10year 100,000 miles warranty conveyed to me… this is the farthest thing from the truth.

Fast forward a few years ahead in the height of Covid and I took the car in for a recall letter I had received. While driving to the dealership, the engine oil light started flashing. I pulled over to check the oil and it was fine. The light went out so I drove the last few miles to the dealership, when I pulled in the oil light started flashing again. The car had around 67,000 miles on it and had been faithfully maintained in my garage. I owned a lift at the time and performed all my own general maintenance and followed factory maintenance intervals and recommend oil weight & filters.

From this point on it became a 6 month long battle between Hyundai, Hyundai certified pre owned extended warranty department, the Hyundai service department, and myself.

Engine tear down found a failed internal oil pump. The service department submitted their findings to Hyundai under another internal service bulletin for failed main bearings. The oil pump was the failed part, but lack of oil tore up the bearings.

I let the service department know upon drop off that I had bought the vehicle as certified pre owned with the extended warranty, but it seems they tried to submit their findings under original factory warranty. This caused a back and forth between Hyundai warranty departments and that meant my car sat with a torn down motor untouched until a resolution could be reached.

The dealership initially offered a loaner vehicle, but decided to refuse. The warranty would not grant a covered rental until they could hash out which warranty was responsible to cover the repairs. I was without a vehicle for roughly 6 months and had to rent a car out of pocket while continuing to still be responsible for my loan payments.

Multiple calls to Hyundai Corporate, Hyundai Legal Department, Hyundai certified pre owned warranty department, all ended with being told each department wasn’t responsible and my claim was not covered. Legal threats were shrugged off from their legal department. The dealership certified pre owned specialist didn’t know the caveats of his own brand’s warranties.

This entire experience was a total nightmare. Eventually a different service manager was able to pull some strings to find a way to get the repairs covered. I think it became a split cost between the dealer, factory warranty, and pre owned warranty. I have more in depth documentation somewhere, but this is just off my memory.

There were 2 other Hyundais in our extended family in this same timeframe. Both a Kona and a Tucson, both of which ended up with bad motors… both had nightmare interactions with Hyundai and local dealerships. They’re nice vehicles until they break, and they will break.

I’ve vowed to NEVER PURCHASE A HYUNDAI ever again. Hyundai will do everything in their power to NOT honor their warranty and they definitely use that “10 year 100,000 mile warranty” as the key sales pitch for selling new and used Hyundais. Hopefully more of these stories come out.

Dave K. (not verified)    March 12, 2025 - 8:31PM

In reply to by Brian (not verified)

We have 175,000 miles on our Explorer Sport, we have the dealer change oil about every 3000, because of the turbos, no more expensive than the drive thru oil change, and Ford rotates the tires, checks the computer, washes it, ect, we know the timing chain/water pump will need to be changed eventually, but so far, so good.

Doug L (not verified)    March 7, 2025 - 9:30AM

The car ran okay when she drove to the dealer but was undrivable after they changed the oi, they almost certainly damaged it. I'll bet they drained the oil but failed to put oil back in until it started to rattle. The dealership is responsible for replacing the engine. This lady needs a lawyer.

Andrew (not verified)    March 7, 2025 - 9:40AM

2020 Palisade 71,429mi. Had engine rattle, code pop up, ran it= cam shaft position error. I looked it up, online told me check OIL. 4 QT LOW, NO LIGHT WARNING..I was getting oil changes at regular times and it had only been several wks. I topped it off. Had dealer do the next oil change and dio: NOTHING WRONG, told about Palisade oil consumption being a problem, but that's all. Several wks go bye, rattle back again. I know now, ADD OIL. get to my regular place and have them look. Pulled filter, FULL OF metal fragments. Documented everything. Told me about the Palisade issue too. I leave and drive less than 20 miles, starts knocking, banging, and screeching..I laid on the gas and went for broke.. it Died 3 min later. Sent to dealer: they did dio: wanted all my oil records. I had each and every one. Best of all, last filter with the metal was a dealer filter, and I could show the inspection they did. In the end I waited 104 days and got a new engine replacement. Sucked yes, but I was glad it was on their dime...

Hermine Z (not verified)    March 7, 2025 - 9:48AM

Last year I got a full engine replacement for my 2016 Sonata when my car was at nearly 87,000 miles. I realized something wasn't right with my car because on the freeway at higher speeds the car was making an odd sound.

Took the car in to be looked at, they ran some tests, realized it was an engine issue and we started the replacement process.

In my case, the dealer had never done my oil changes up to that point or any other maintenance services.
Occasionally our mechanic would do the oil change if I took my car in to be looked over to make sure everything was good with the car, like when the car hit 50K miles, but for the most part we did all oil changes at home so we really had no proof the car was regularly maintained.

Hyundai told me that in order for the warranty to apply we needed proof of regular car maintenance as recommended by the manual, otherwise it voids the warranty. So what they had to do in my case was check to see if my engine was clean because with proper regular maintenance, it should be; and it was of course so I got my new engine.

What I was actually shocked to learn was that the power train warranty doesn't extend or reset with the new engine. My car is currently at 95K miles, I'm due for my next oil change at 96K miles and will take the car to the mechanic for a thorough look over, breaks, transmission, engine, etc. Even though I'm getting less than 20K miles with the new engine, my warranty will be up in 5,000 miles.

Daniel Shipley (not verified)    March 7, 2025 - 10:01AM

Oil change person drained the oil and removed and replaced the oil filter but did not refill the engine with oil. The engine was started and ran causing the damage. Only logical conclusion. It happens sometimes but could have been avoided by watching for the oil pressure light to go out when starting the car.

Nick (not verified)    March 12, 2025 - 8:21AM

In reply to by Daniel Shipley (not verified)

I suspect the same... Old oil out, new filter, run the car up and walked away. Whoops forgot to put new oil in. Engine broken. This is the dealerships fault not car manufacturers. Sadly the technician has not stood up and taken responsibility and the dealership is trying to avoid a big bill.

Cody (not verified)    March 7, 2025 - 10:34AM

I bought a brand new 2020 kia sedona off the dealers lot. The speedometer was off by 7+ kph depending on speed driven. Informed the dealer the speedometer needs to be recalibrated. Kia told me the speed can be off by 10% as per factory specs and they don't need to fix it. Kia canada told me they refuse to fix it unless I tear my dash apart, send in my instrument cluster all paid out of pocket of course and pay shipping and handling. This would leave my vehicle unusable for a few months and we have 6 children. It's an impossibility. I dont even know what speed I'm driving at sometimes. I called a lawyer and was informed there are no laws to protect us consumers from bad practices like this. Shame on you kia.

Gautam Amar Bose (not verified)    March 7, 2025 - 11:02AM

This is confusing. Did Hyundai refuse to honor the warranty because of the oil change interval or because the car had over 60K miles?

I wonder if the dealer forgot to refill the oil after draining out the old stuff? That would ruin the engine....

R Dale Evans (not verified)    March 7, 2025 - 11:10AM

I can add that you also must buy your Hyundai from an Authorized Hyundai Dealer if you are buying it used. If you purchased the vehicle from a used car lot that is not authorized, Hyundai will not honor the Warranty.

Subiedoobie (not verified)    March 7, 2025 - 11:21AM

1. No new car comes w conventional oil anymore , why was she running it
2. 7k on conventional is asking for trouble especially on a Hyundai . I've personally known people that have had 5 engines in their Hyundai.

Play stupid games get stupid prizes

Joe (not verified)    March 7, 2025 - 11:48AM

Sounds like the dealer drained the oil and forgot to refill it, then drove it. It happened to someone I know at a Walmart. It took a couple of years for them to finally accept responsibility. Old oil doesn't make an engine come apart, or I'd have no vehicles. If it didn't rod knock when it was brought in, an extra 2k miles won't make it do that after clean oil is put in. The dealership probably is tight on funds, also has a make me and prove it attitude. I'd picket the front of the dealer

Donald wright (not verified)    March 7, 2025 - 12:08PM

We purchased a 2017 hyundai santa fe in May of 2024. We also purchased an extended warranty which cost us 3000 dollars which we financed in the loan . The car had 65,000 miles on it when purchased. During the first month of owning the car the engine was using a quart of oil in 1,000 miles which was brought to the service departments attention. We were told if we wanted an oil consumption test performed on the car we had to bring it to the dealer every time it needed oil. NOT PRACTICAL.!!! It got to the point where it was using a quart every 500 miles or less. Again brought to the dealers attention. In Sept of 2025 after driving the car an additional 45,000 miles the engine catastrophically failed. We argued, Dickerson and finally hyundai AND extended warranty refused to pay for a new engine because I went over my oil change interval 200 miles. 10,000 dollars was the price I was quoted for a new engine.after the car sitting at the dealer for 3 months torn down,lots of fighting,argueing and finally threatening to see an attorney. The dealer agreed to pay all but 2,000 on a new engine.not happy with hyundai but happy the dealership agreed to what they did.im happy with the new engine but now,do I trust it for the long haul? I offered to trade it fir a new one but was offered 10,000 less than I owed on it. Here's the thing,payments were 500/mo, sat for three months, 2,000 for engine repair, 3,000 for worthless warranty,10,000 negative equity in value. You do the math, I will never get my money out of this car.

CJ Diehl (not verified)    March 7, 2025 - 12:13PM

Had a Tucson, whole new engine replaced at 50K, then a recall for a potential “engine catching on fire”. Went to dealership in North Aurora, they told me it would take three months before they could get to it. When asked what I should do in the meantime. They told me “not to drive it”. 😂 I have come to believe they have to offer these long warranties because their brand and product is garbage, then follow your purchase with smoke and mirrors. The above story doesn’t surprise me in the least.

Mike (not verified)    March 7, 2025 - 12:46PM

In my opinion the manufacturer is off the hook no matter what kind of oil she was using or the intervals as she is not the original owner and past The second owner warranty of 60K miles. I passed work experience is dealership auto mechanic and I find it highly suspicious that the car was driving fine when she dropped it off for an oil change and then the engine was completely shot when she picked it up. Something happened while the car was there.

Simon (not verified)    March 7, 2025 - 12:58PM

☑️ Car is 2012 or later
☑️ Make is Hyundai
☑️ Exceeded 5000 mile oil change interval
Game over.
These stories abound. Newish cars with lightweight, turbocharged engines with GDI are filling up the junkyards at alarming rates. Chances are, the oil had fuel dilution due to low-friction piston rings and GDI. Automakers are forced to make engines like this due to emission and fuel economy standards from the US EPA.

Daniel Subrata (not verified)    March 7, 2025 - 1:20PM

I previously owned Hyundai Tucson 2015 and my daughter owned Tucson 2018, her Tucson engine failed twice and mine once, until then we decided to dumped those cars and get other car that not Hyundai.

Brian Henson (not verified)    March 7, 2025 - 2:32PM

I had a similar issue with a Hyundai Tucson. Bought it from a dealer, and went to my mechanic after my 1st 3,000 miles and was told the engine was about to basically collapse. Also, this was a known Hyundai issue. In addition, the transmission was on the verge of failure. Over the one year that I struggled with this nightmare vehicle, there were many issues, including doors that randomly refused to open, for weeks at a time, then began to work, and the A/C failure, which prompted me to top off the oil, which I was burning at the rate of over 1 quart per tank of gas, take it to the nearest Toyota dealer, and hold my breath for their trade number. I lost money, but I got rid of that nightmare vehicle. Never again. There's a reason the Hyundais cost less than comparable brands. My mechanic tried to tell me before I bought it, but I wouldn't listen. Lesson learned!

Tina (not verified)    March 7, 2025 - 2:52PM

We had a 2016 santa fe, did regular oil changes and one day the engine was making rattling noises. Took it to get looked at and apparently a cam phaser bolt came loose and made a hole in the top end of the engine, therefore leaking oil. We were under the extended warranty from hyundai regarding engine issues but they refused to process the claims stating our top end issue wasn't the bottom end issue covered in the extended warranty 🤦🏻‍♀️ to fix would have been over $8600, not worth it. So we were without a car and had to purchase a new one. Since our issue the dealership has seen 2 more top end engine issues come in. Hyundai canada will find any way not to replace the engine issues.

Jed Pfundt (not verified)    March 7, 2025 - 3:10PM

I own a 2019 Hyundai Tucson that was purchased brand new. It has need major repairs 5 times with all them being engine/timing chain issues. Multiple dealerships said they repaired the issue but it happens again every time. They said I may need a new engine but now I'm over the 100k mileage and the same engine/timing chain issue is still happening. Also the carburns 3-4 quartz of oil between every 3,000 mile oil change. But now they won't do anything to help even though they have never actually remedied the problem. I will never give business to Hyundai again.

Travis (not verified)    March 7, 2025 - 3:10PM

I push the used 2018 Hyundai Tucson approximately 3 weeks ago after driving for one week the check engine light started flashing I was told to bring it into local Hyundai dealership Voss Hyundai Centerville. Upon dropping the vehicle off I was told it should be checked the next day. The following day I was told their tool was broke and they could not do the proper diagnostics which is a bearing clearance test due to the knock sensor engine code is what it was getting which is a major issues with these years of Hyundai's. I was told the tool would be in within a week the tool is still not in a week and a half later now I'm working to get the vehicle moved to a new dealership to get tested after being lied to you by the first one. Hyundai consumer affairs seems very lackadaisical on getting this done getting the tow taken care of and getting it moved to the proper location telling me it will take them 3 to 4 days to get a paperwork approved to tow the vehicle. There is no loaner car available at either dealership there is no rental car available without me paying up front. I am currently losing $200 a day by not being able to use my vehicle. This issue is one that should have been recalled by Hyundai however for some reason Hyundai chose to say their warranty would cover it even though it does not coverage for some owners such as second owners I am hoping that even though I am the second owner that they will still cover this since it is their issue and it wasn't because of a missed oil change. However if not I do have an alternative powertrain warranty that was given at the time of purchase a vehicle so either way I should be able to get this covered one way or the other however I do not know how long this is going to take and as I said due to the nature of my employment I have to be able to drive my personal vehicle each day and I make a little over $200 per day driving it so I have lost already in the realm of $2,000 since it has been in the shop I only used it for less than a week before it went bad.

Paula (not verified)    March 7, 2025 - 4:57PM

I would love to know who the Hyundai dealer is and in what city? I think other Hyundai owners, or potential buyers should be warned!