Hyundai's $41,000 Palisade quietly out-teched the Toyota Grand Highlander and Honda Pilot

Three-row family SUVs are all the rage these days, as they are among the most practical options for larger families, unless they opt for a minivan. That's not news, though; the real news pertains to how two brands tend to keep their places on every "best family SUV" list — including our own. Hyundai and Kia still tend to hold some of their old reputation for poor reliability; both have bounced back through rebranding and some of the best warranties on the market. That said, the Hyundai Palisade is a particularly enticing model that stands up to Japanese giants like Honda and Toyota.

The Cheapest Family SUV Might be Your Best Option

Family SUVs are popular for good reasons that we discuss throughout the article, but there's one thing that buyers are reasonably upset about: sticker shock. It's nearly impossible to find a truly cheap three-row SUV without browsing the used market. In fact, the average cost of a new car on sale in 2026 just reached nearly $52,000 in a recent report, which is 4.9% more than just a year ago.

Hyundai and Kia keep customers rolling in the doors by combating the typical sticker shock. Our three contenders for this comparison include the Hyundai Palisade, the Honda Pilot, and the Toyota Grand Highlander. All three are excellent options in their own ways, but Hyundai out-guns them all in price.

The Palisade is currently available with both a standard gas-only engine and a hybrid powertrain. The gas-only variant starts at just $39,435 before destination, options, and fees, while the hybrid Palisade costs at least $44,160. Toyota is next, with the Grand Highlander being offered at $42,260 for its gas-only LE trim, and $45,610 for its cheapest hybrid option. Finally, the Honda Pilot costs $42,395. Honda only offers one gas powertrain for the Pilot, leaving it out of the hybrid rivalry so fiercely fought by competing brands.

Who Wins The Interior Wars?

When we say the Palisade "out-techs" the Grand Highlander and Pilot, that doesn't just pertain to its infotainment. That said, the Palisade actually does offer a simple and effective system that's easy to navigate, isn't too large or obtrusive in the cabin, and comes with standard Apple CarPlay and Android Auto. When we drove the current model, our driver found it to be a large improvement over the outgoing 2025 model.

We feel as though the Honda Pilot's infotainment system finally caught up with its segment rivals this year. The model now comes with a standard 12.3-inch touchscreen (in place of the outgoing 7.0- and 9.0-inch screens). The interface itself is still extremely simple, and we'd rather just use it to navigate to its standard Apple CarPlay, where we'd spend most of our driving time.

Toyota hasn't updated the Grand Highlander since its debut for the 2024 model year. It comes with a standard 12.3-inch touchscreen and standard CarPlay and Android Auto like its rivals.

Hyundai Generally Offers More Features for Less Money

Hyundai might offer its cars at less than the competition, but that doesn't stop the automaker from filling them with features. For example, the Palisade's SEL trim starts at $41,940. It comes with leatherette seat upholstery, an 8-way power-adjustable driver's seat, heated front seats, and a sliding second row with electric releases in the cargo area for easy storage.

The Grand Highlander's LE trim costs more, but still comes with cloth seats, an eight-way power-adjustable driver's seat, no heated seats, and manual seat releases. Honda follows suit with its base model costing more than the Palisade's SEL trim. However, it comes with standard heated front seats, a ten-way adjustable driver's seat, and one-touch flat-folding second-row seats. It goes to show how buyers can find Hyundai's equipment in competitors' cars, but it'll cost more.

Three-Row Family SUV Dimensions Compared

All three models' base trims seat up to eight people as standard, but they do so with varying degrees of comfort. In the Palisade, occupants in the second and third rows get 43 and 32.1 inches of legroom, respectively. The Grand Highlander gives its second- and third-row passengers 39.5 inches and 33.5 inches of legroom, respectively; those in the second row get slightly less room compared to the Palisade, but third-row occupants will be slightly happier. On that note, the Honda Pilot's legroom for the second and third rows comes in at 40.8 inches and 32.5 inches, respectively.

As far as cargo space goes, the Palisade falls behind its competition. It can fit 19.1 cubic feet of cargo in the trunk, or a maximum of 86.7 cubic feet behind the front row. The Grand Highlander starts with 20.6 cubic feet in its trunk and expands to 97.5 cubic feet behind the front row. In comparison, the Pilot's capacity ranges from 18.6 to 111.8 cubic feet when accounting for the space between the seats and the floor. The SAE measurement standards place the Pilot's max cargo space at 87 cubic feet with its back two rows folded down.

Powertrains and Fuel Economy Comparison

Even though most family SUV buyers don't pay much attention to how powerful a car is or how well it handles a tight canyon road, those aspects still matter in terms of safety. The Palisade is offered in two variants; its cheaper option is a gas-only 3.5-liter V6 that makes 287 horsepower and 260 lb-ft of torque, but buyers can upgrade to a 2.5-liter turbocharged inline-four hybrid system that makes 329 hp and 339 lb-ft of torque. The gas engine is paired with an eight-speed automatic transmission that sends power to the front or all four wheels. Our driver quote below pertains to the gas-only option.

Honda only offers a single engine for its entire Pilot lineup: a 3.5-liter naturally aspirated V6 that makes 285 hp and 262 lb-ft of torque. Power is sent to either the front wheels or all four wheels via a 10-speed automatic transmission. Toyota broadens its horizons with three options: gas-only, hybrid, or hybrid MAX. You can choose a 2.4-liter turbo I4 that makes 265 hp and 310 lb-ft of torque, a 2.5L hybrid four-cylinder that makes 245 net horsepower, or a 2.5L turbo I4 hybrid that makes 362 hp and 400 lb-ft of torque.

As for fuel economy, the gas-only Palisade with FWD manages to reach 19/25/21 mpg city/highway/combined, while its hybrid FWD version can get 33/35/34 mpg. The Honda Pilot FWD trims get 19/27/22 mpg. The Grand Highlander's gas-only variant gets 21/28/24 mpg in a FWD configuration h. The hybrid FWD setup reaches 36/34/36 mpg. The Hybrid Max only comes in AWD, so it gets 26/27/27 mpg.

Palisade vs Grand Highlander vs Pilot Powertrain Warranty Coverage

Toyota and Honda have far better reputations for reliability and longevity than Hyundai. We're not here to say a Hyundai is necessarily more reliable than any given Toyota or Honda. However, Hyundai is committed to making sure its owners are happy and taken care of to a greater extent than either Japanese rival. Hyundai's warranty program is the best in the business by far.

Hyundai (and Kia) offer all their cars with a 10-year, 100,000-mile powertrain warranty that covers the engine, transmission, driveshafts, axles, and differentials. Toyota and Honda only offer powertrain warranties that last for 5 years or 60,000 miles, leaving their customers to fend for themselves while Hyundai continues to offer support during a car's more challenging years.

The Palisade Offers the Best Bang for Your Buck

Hyundai's Palisade is so good it ends up on everybody's lists of the best family SUVs because it's simply as good as or better than its competition. If it falls short in any category, Hyundai makes up for it by offering it at a far lower price than any of its rivals. Anyone who still views Hyundai models as unreliable can be reassured by the brand's warranty program, too. On the inside, the lower trims come with plenty of comfort features, and its higher trims are nearing Genesis levels of luxury despite costing less than either of the Pilots or Grand Highlander's top trims. It seems as though Hyundai found the winning formula for making one of the best family SUVs.

Sources: Hyundai, Honda, Toyota