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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

Susan Chatterton (not verified)    March 15, 2025 - 9:26AM

I had a Elantra an original owner and 2-3 months before the 10 year warranty expired the engine stared acting up. Had aprx. 52,000 miles on an almost 10 yr old car that was in my garage most of the time. The car was pristine used seat covers. Loved that little car. Well the garage kept me coming n recoding back which they had for hours the first time and days the second time. Found out there was a huge class action lawsuit that was won but still didn’t matter. They dragged their feet. Found excuses when I called the corporate headquarters. No lawyer I called would get involved for help. Live in Maine. Heard one lady who had her engine replaced with another used one by her dealership and 2 months later that broke down. When I went to bring it back in to the dealorship engine seized. It was very close to a Subaru dealership so as u can guess I am a very happy owner of a new Subaru. Would never recommend a Hyundai to anyone who asks me. Disgusted with them.

Charles (not verified)    March 15, 2025 - 10:59PM

I purchased a 2015 Hyundai Genesis 3.2L DGI sedan, with approximately twenty four thousand miles on it. I also purchased and extended warranty that covers even more than the warranty that the car comes with. That was a few thousand extra. While under warranty, a few years after I took ownership, experienced rough shaking when driving the car that quickly led to a seized engine. Took it to the dealership, which, by the way, has no clue how to welcome customers who purchase luxury cars, and they told me the engine is gone. Apparently due to a sludge buildup. You'll never guess the one and only thing that none of the warranties cover... SLUDGE! After explaining that, they will not be responsible for replacing. I'm fixing my engine. They gave me an estimate of $14000 to drop a new engine in there. Here's the stipulation $14000 for a new engine and I can still keep everything in my car, covered by the warranty that I paid thousands of $4 plus the warranty that came with the car. That's still valid if I went outside of Hyundai too fix or replace it, all warranties will be void.
I was furious! I did some research to see if they sold me a lemon, and gathered legal advice. What I discovered was the owner before me may have missed an oil change or 2. I myself was late for an oil change. My issue was, how do they know that this is my fault? And not the previous owners, seeing as his maintenance record was not perfect. And why would they sell me a car knowing that? Or why didn't they do a fool and thorough inspection before the sale? The lawyer I spoke with this told me I have a great case. However, it would have cost me just as much to hire this lawyer to fight for me.
After everything was said and done, and I let everything sink in and I accepted my defeat, i chalked everything up as a loss. I promise I will never purchase another Genesis. I spent $8000 to get the engine rebuilt. I refuse to sell this car. I will drive it into the ground and get every dime I lost. In the meantime, I went back to Volvo I should have stayed loyal in the first place. Lesson learned.


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David Osborn (not verified)    March 16, 2025 - 11:13AM

Bought a 2017 Hyundsi Santa Fe new from dealer. Engine went out at 98k miles. Hyundai did replace the Engine. At 150k the engine had the same failure as before.. Dealership is saying the new engine only has 50k warranty. They are agreeing to 90% but saying the replacement will be $19,000. So out of pocket $1,900 for me. I only paid $37,000 for the car when I bought it. But they put 38,000 in it

Shammah (not verified)    March 16, 2025 - 5:35PM

Cat should stop blaming and running to Hyundai. The grease heads at the dealership should be held accountable for the consequences of their actions/inactions.

Furthermore, if you intend to utilise warranty of a used vehicle, be sure to ask questions and don't go making assumptions like poor Cat did.

David Bower (not verified)    March 16, 2025 - 7:45PM

Don't go over scheduled servicing times. Whatever comes first, milage or months. Read everything. Thats your responsibility. These engines will do over 300,000 if serviced every 3,000 miles or 5,000 kms.

Manufactures have no leg to stand on if you do this and for goodness sake... keep all receipts.

Gerry (not verified)    March 17, 2025 - 9:26AM

The 2nd owner statement made in this article is partially correct. If you buy a Certified Hyundai from a Hyundai dealer you get the 10 year / 100,000 mile warranty. If you buy it from a non-Hyundai dealer it isn’t certified and only gets 5 year / 60,000 mile warranty. It is best to buy a used certified Hyundai vehicle.

Tara (not verified)    March 17, 2025 - 9:31AM

We had a 2016 Sonata that sat for 350 days at the dealer. Ended up Hyundai Motor America bought it back under the lemon law. Our local dealership was awesome to deal with, HMA was the nightmare.

Akilah Carter (not verified)    March 17, 2025 - 10:06AM

First owner bought my 2021 Hyundai Tucson brand new. Engine was a part of recall but they denied engine replacement due to me not being able to find my oil change history from 2022. I had all other reciepts. Caused me to have a repo for the first time ever last month. I could not afford thousands for a repair out of pocket nor to keep up with the car payments and rentals. I was under all warranties original and extended. Currently seeking legal representation

Joey loud (not verified)    March 18, 2025 - 6:29AM

Exactly why I stay away from all Hyundai and KIA vehicle's. Nightmare stories can be easily found anywhere. Sure some look nice (questionable) but are so cheaply made that they are basically disposable.

Charles Leflet (not verified)    March 19, 2025 - 9:51PM

First off when toke it in for her oil change, the service person, if there was that condition should have been brought to her attention, and oil change would have not been done. But oil change was done, so there responsible, the tech should have noticed something was wrong. And she should been brought to her attention, dear ship's are creating problems. I've taken my granddaughter car into ford dealership for two oil changes and no issues and the third oil change the service person say the car has an oil leak and I told him that no one prior to the third oil change, i've never mentioned anything about a oil leak, they do this to rip of customers for profit, they create issues. I'll do my granddaughter oil changes from here on out, I've been working on car since I was twelve years old, I'm 68 yrs old, there ripping her off, sue them, the dealership responsible for damages.

Jenryclayd (not verified)    March 20, 2025 - 1:59AM

Same story with my 2011 Sonata Exploder. The engine explodes, car falls apart and they say extended warranty no good.

The sales people use the whole bait and switch about 100k miles and never mention this whole second owners, or if you finance after leasing, you are also the second owner. Even with the whole exploding engine recall and only 68k miles on the car, Hyundai and dealerships were still playing games like, "what sound, I don't hear any grinding issues? No, all these other breakdowns aren't a cascade of problems happening from your engine exploding.

Absolutely trash company.

Next time remember the "H" word you are looking for is spelled "H.O.N.D.A."

Hyundai is a garbage company of whom incouldnt have gotten further away from fast enough.

Jim Daley (not verified)    March 20, 2025 - 4:26AM

Greetings,
This may be a bit long, but please bare with me. My name is Jim Daley and I purchased a '16 Hyundai Veloster Turbo in '18 as a CPO which came with the remainder of the 10yr/100K mi powertrain warranty. In late '19 early '20 turbo and intercooler needed to be replaced. Despite it taking several months for the repair, the cost was fully covered under the warranty. The work was performed at Pride Hyundai in Lynn Ma, thankfully they had provided a loaner vehicle thankfully. Despite the long wait to getting the car back, there was ZERO costs incurred by me. There was no diagnostic fee, nor any "tear down"costs or any other associated costs... Fast forward to July, early August '24. My vehicle overheated, so I had it towed to my mechanic..... After he scanned it, and checked everything out and knowing I have the factory 10/100,000 powertrain warranty he suggested that I have the dealership look at it..
*Important later(no check engine lights, no codes present)
So I had the vehicle towed to Mirak Hyundai of Arlington with Hyundai Roadside. Before it was even worked on, I was told by the service department there would be a $500 "diagnostic fee" and that a 3rd party adjuster would be scheduled to come out and inspect the engine to determine whether or not it is warranty related. I was put in the position to where there was no choice but to agree with them so they could inspect it... Fast forward a couple days, I received a call from the service department stating that "the good news was everything was back together, the bad news is that the check engine light came on and two sensors were broken and had to be replaced" Conveniently, that wasn't covered under the warranty.(Despite the fact that a few mechanics I've spoken with stating they could inadvertently fail whether disassembling or when reassembling of the engine components)
(Despite breaking down, no check engine light was on prior to being towed to the dealership) So I was forced to pay just under $1200.00 for that to get my vehicle back. Once I picked up, I noticed the AC wasn't working (working perfectly prior to repairs)
I immediately asked the service advisor they forgot the recharge the AC, and I was told that they didn't touch the AC unit (Hard to access the headgasket/valve cover repair without comproming the AC system) After what happened with having to pay almost $1,200 to get my car back, I just left. Upon leaving the dealership I reached out to my personal mechanic, who was also taken aback they didn't recharge the system, offered to take care of it the in the next day or so. Once I got to his shop, I opened the hood, and that's when I discovered a SIGNIFICANT amount of oil splattered and saturated all over the passenger side of the engine. (pics were taken) The following morning had the car towed back to the dealership. That I received a call from the service department, saying my car was all set. He prefaced his comment stating "it wasn't that big of a deal" that it was only the main engine oil seal had somehow loosened and wasn't fastened properly. At the time, I thought to myself it probably was, but took his word in saying that it was all set, no damage done. In hindsight after I'm going to the dealership, he just handed me the keys, and said I was good to go.. As I started to believe I realized there was no paperwork associated with the visit. So I asked for a one. After a couple of minutes you printed one up and off I went. In hindsight it makes sense to me now. Because after reaching out to the warranty company of the current situation of the significant internal damage, the warranty company person I had spoken with just days ago stated that this is the first he's hearing of that (tow back to the dealership a couple days later) So emailed the warranty company all of my communications, pictures and screenshots between the service advisor, in addition to Hyundai North America customer service.. Fast forward to 11/17
A month later it was deemed warranty related and was offered $9625 or a complete engine replacement. Chose the replacement STILL ended up having to pay $4441 to pick up the car

Eric Crnkovic (not verified)    March 20, 2025 - 5:29AM

Just buy a $0.50 receipt book from Walmart right down oil change at the mileage. You were supposed to get it done like you did it yourself or somebody next door did the oil change. That's all you need. That receipt will get you covered under your warranty I worked at Chevy and it worked for years. I knew they weren't really getting their oil change. They would just bring me a stack of these receipts and GM would accept them

Damien (not verified)    March 20, 2025 - 10:52PM

I’m not a bit surprised. They have the worst customer service in industry. I know first hand from their corporate office to the dealership. After getting brushed off by my own dealership and told to go to another…which I did immediately,they called the dealership ahead of my arrival. They were ready for me and echoed what my own dealership had to say. I wouldn’t set foot in another Hyundai again.

Ron (not verified)    March 21, 2025 - 4:01AM

I once had to install a 4.6 L in a police interceptor that a lube tech sent out the door dry. Dealership lost the account over it and never did get their business back.

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

So she didn’t read the used car sticker on the window that is required by law, that states what warranty if any is left. But I agree that Hyundai should pay at least half of the repairs. If the car was purchased from a Hyundai dealer that is.