Lexus is a luxury brand, which also means a premium price tag. If you can’t afford any of its vehicles, there are thankfully alternatives that, though not matching the brand caché of Lexus, but delivers sumptuous luxury at similar levels.
Don’t expect this SUV to be cheap, either, since you’re still asking quite a bit much, but versus a comparable mainstream rival, this SUV is punching above its weight class. If you want an SUV that delivers Lexus luxury without Lexus pricing, here’s the model that I think you should go for.
Consider The Palisade’s Sumptuous Feel
Luxury is mostly based on perception and not necessarily the brand. An automaker only becomes luxury based on how the customers perceive it, whether it’s through price, design, quality, rarity, or a combination of all four. In the case of the 2026 Hyundai Palisade, it isn’t from a luxury brand, but it has the qualities that can be perceived as luxurious.
Appreciate The Luxurious Aura
But for a vehicle to be perceived as luxurious, it has to meet a high standard of design and quality. As such, let’s begin with how the exterior looks. Hyundai’s design team has done an exceptional job of making this large three-row SUV look distinct. Clever use of textures is seen in the car’s wide front grille that’s flanked by vertically stacked LED headlights. But wait, where are the headlights, you ask? Well, they’re cleverly blending with the grille pattern, while the LED daytime running lights have a satin lens in order to match the rest of the front fascia’s matte silver trim when the vehicle is off. Now that’s clever and a high regard for design.
Four variants are available: SEL, SEL Premium, Limited, and Calligraphy. Even if you only have a budget for the SEL, you’ll already love the way this three-row SUV looks, though its 18-inch wheels do look small relative to its size. Even when opting for the Limited, and its 20-inch wheels, the Palisade is still well below the price of an equivalent three-row Lexus TX. Blacked-out pillars give a floating roof effect—one that’s complemented by satin silver window trim running on top of the windows. This window trim element also kinks down towards the rear end, wherein you’ll see LED taillights that mimic the design of the LED daytime running lights.
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And The Lounge-Like Interior
Luxury is best felt when you’re able to touch and feel the well-crafted interior of the Palisade. The deeply-sculpted dash features a wide expanse of soft-touch materials and leatherette surfaces. Step up to the Calligraphy variant, however, and you’ll be lavished with sumptuous Nappa Leather and genuine wood trims on the dash and the center console, though even in the Limited, wood trims are already equipped, along with genuine leather upholstery.
As for the tech features, two 12.3-inch screens running the connected car Navigation Cockpit (ccNC) operating system fill the deeply sculpted void inside the dash. At the same time, a plethora of comfort features are offered as standard, such as heated and ventilated power-adjustable front seats, H-Tex leatherette upholstery (in the SEL and SEL Premium), a built-in Alexa voice assistant, acoustic-laminated front glass, wireless charging, 64-color ambient LED lighting, a hands-free powered tailgate, and second-row captain’s chairs, just to name a few.
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Two Powertrain Choices For Opulence
The 2026 Hyundai Palisade is offered with two engine choices for the first time. That’s because, apart from a familiar but improved 3.5-liter V-6, you also now have a 2.5-liter turbo hybrid system. Luckily for you, our dear reader, we have been able to experience both the V-6 and the hybrid.
A Creamy V-6
It’s no surprise that the 3.5-liter V-6 is a buttery-smooth engine. The eight-speed automatic it is mated to is also adept at keeping the engine in its sweet spot, though it’s not perfect. The V-6 engine, though smooth, offers just the right amount of power to the Palisade. Not powerful, but not underpowered, either. Unfortunately, the eight-speed auto can sometimes—albeit rarely—hunt for a downshift, probably as a way to keep the RPMs low for improved fuel economy.
2026 Hyundai Palisade V-6 vs. Hybrid
|
Model |
Engine |
Horsepower |
Torque |
EPA Fuel Economy (Combined) |
|
Non-Hybrid |
3.5-Liter V-6 |
287 HP |
260 lb-ft. |
21 MPG (FWD) 20 MPG (AWD) |
|
Hybrid |
2.5-liter turbocharged inline four hybrid |
329 HP |
339 lb-ft. |
34 MPG (SEL, SEL Premium) 31 MPG (FWD Limited, FWD Calligraphy) 29 MPG (AWD models) |
The main culprit for the engine feeling merely adequate is its torque. 287 horsepower is enough for its size, but the 260 pound-feet of torque can sometimes feel underwhelming, especially since most of the propulsion happens at the 5,000 RPM mark—not ideal if you’re fully loaded with eight passengers.
And A Potent Hybrid
But if you want the most potent way to drive a 2026 Hyundai Palisade, then the hybrid is the best version. The Palisade is the first vehicle in the Hyundai Motor Group stable (HMG) to utilize this next-generation hybrid system, blending a 2.5-liter turbo four-cylinder along with electric motors. With the Palisade Hybrid, you don’t just get more power and torque, with 329 horsepower and 339 pound-feet of torque on tap, but you also get significantly improved fuel economy.
The hybrid setup is excellent. It delivers good fuel economy with strong acceleration, which is a challenging combination not every hybrid manages to balance. This is easily one of the best hybrids we’ve had the pleasure of driving.
– Nicole Wakelin, TopSpeed Journalist
For SEL and SEL Premium with front-wheel drive (FWD), the Palisade has a combined fuel economy rating of 34 MPG, while adding AWD to any variant reduces the economy to 29 MPG—very impressive figures considering it’s more powerful than the V-6. Furthermore, with a six-speed automatic versus the e-CVT that automakers like Toyota utilize, the power delivery of the Palisade Hybrid is still very linear and natural.
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Both Offer Supreme Refinement Levels
Whether you prefer the V-6 or the hybrid is up to you. In our books, better go for the hybrid, as it offers pretty much both power and efficiency, but regardless of powertrain choice, sumptuous refinement comes as standard in the 2026 Hyundai Palisade.
Stable Handling And Ride
If luxury-grade handling and refinement are what you’re after, then the 2026 Hyundai Palisade is perfect for you. The new Palisade’s suspension and handling tuning help this large three-row SUV feel smaller than it actually is, thanks to perfectly weighted steering, along with body control that balances ride and handling. No, this isn’t a sporty SUV, but an SUV’s main mission is to be pleasant to drive. Credit the self-leveling hydraulic rear dampers, which keep the body leveled even when loaded, and it also helps in the car’s stability as it flows through corners. Ride quality is equally impressive, quelling bumps even before its vibrations are transmitted into the cabin.
Along With EV-Like Quietness
Also, regardless of which engine choice you go for, the Palisade, you can expect supreme levels of quietness and refinement. Though the 3.5-liter V-6 can make its presence felt when pushed hard, the way it sounds is surely better than a four-cylinder and is not considered loud anyway. Opting for the hybrid will make things even more serene, especially with the hybrid drivetrain capable of a high degree of pure electric driving.
Other noise sources are also well suppressed. The inherent shape of the Palisade has already been designed around aerodynamic quietness, which is also a contributor to improved fuel economy. Combined with the thick layers of sound deadening throughout the cabin, along with the standard acoustic glass for the front section, you’ve got a vehicle that will make long journeys feel more relaxing. These qualities undeniably help the Hyundai Palisade drive like a proper luxury SUV, but without the Lexus-like price tag.
Sources: The EPA, Hyundai