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.

Posted: March 6, 2025 - 7:17AM
Author: Denis Flierl

"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 story: I 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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