Toyota is usually the go-to option for all things family-oriented, since the brand’s vehicles are reasonably priced, historically reliable, and great-looking, and most models’ higher trims can reach Lexus levels of luxury. The Japanese brand currently offers a few family SUVs, including the Highlander, Grand Highlander, Sequoia, and 4Runner. The RAV4 may be Toyota’s most popular model, but it only comes with two rows of seats, making it less practical for families. That said, Hyundai has been on the upswing in terms of popularity.
One family SUV in particular is outperforming Toyota’s three-row SUVs: the Palisade. How well is it selling, and why are buyers choosing it over any Toyota?
All specs have been pulled directly from the manufacturer. Prices are correct at the time of writing, and exclude destination, options, taxes, incentives, and potential dealer fees. Automakers reserve the right to change prices at any time without notice.
The Numbers Don’t Lie: Hyundai’s Sales Are Winning
2026 Hyundai Palisade Limited front 3/4 angle in blue while drivingHyundai
August sales reports are coming in to reveal a continuously competitive three-row SUV market. The two main models we will focus on today are the Hyundai Palisade and the Toyota Grand Highlander. However, the Sequoia, 4Runner, and Kia Telluride’s sales are worth bringing up for comparison’s sake.
Hyundai posted 12,729 Palisade units sold in August 2026. That beats Grand Highlander sales last month by 2,738 units, since it only moved a total of 9,991 units.
The Sequoia saw far fewer sales; fewer people need full-size SUVs, and they can go without models that cost as much as the Sequoia does. That said, Toyota sold just 2,471 Sequoias in August. Buyers prefer the 4Runner, since it’s just as rugged and capable off-road and when towing, but it costs far less. The Palisade is remarkably close to reaching the 4Runner’s sales, as the body-on-frame model managed to sell 13,314 units last month.
But raw sales numbers only tell part of the story – the Palisade’s pricing strategy may be the real reason buyers are abandoning Toyota lots.
Hyundai Pricing Helps Influence Buyers
2026 Hyundai Palisade Limited rear 3/4 angle in blue while drivingHyundai
Hyundai and Kia have long been considered budget brands in every segment they occupy. While their build quality, reliability, and comfort features have improved, they usually remain cheaper than their Japanese rivals. The price gap is real and meaningful – a family choosing between base trims is looking at roughly $2,500 in savings with the Palisade.
The gas-only Palisade is offered in six trim levels, including the SE base model that starts at $39,735, the XRT Pro mid-level off-road trim for $50,170, and the range-topping Calligraphy trim that starts at $54,860. Buyers can also choose a hybrid variant, which starts at $44,560 for the SEL trim, and tops out at $57,680 for the Calligraphy Black Ink (the XRT Pro trim is excluded from the hybrid model’s lineup).
Kia prices its Telluride slightly cheaper, ranging from $39,190 to $56,790 for the gas model, and $46,490 to $57,590 for the hybrid model.
Toyota’s Grand Highlander is priced to compete, but buyers still have to fork over a few thousand dollars more than a base model Palisade just to get in the door. There are four gas trims and six hybrid trims to choose from for the 2026 model year (2027 MY isn’t available at the time of writing).
Gas-only pricing starts at $42,260 for the LE trim and caps with the Platinum at $55,445. Hybrid trims start with the Hybrid LE at $45,610, and end at $60,175 for the Hybrid Max Platinum.
A lower sticker price attracts buyers – but Hyundai had to make sure the Palisade didn’t feel cheap inside. That’s where the real gamble was.
The Palisade Has Room For The Whole Family
2026 Hyundai Palisade interior view of the second-row seatsHyundai
For thousands less, you’d expect to give something up in space – but the Palisade’s interior dimensions actually beat the Grand Highlander where families feel it most. Buyers are left with room for up to eight occupants in both models, however dimensions and usability vary.
Palisade versus Grand Highlander Dimensions Compared
2027 Palisade
2026 Grand Highlander
Headroom (1st | 2nd | 3rd) (inches)
41.5 | 40.7 | 37.8
41.5 | 40.2 | 37.2
Legroom (1st | 2nd | 3rd) (inches)
44.2 | 41.4 | 32.1
41.7 | 39.5 | 33.5
Cargo Space (Trunk – Max)
19.1–86.7 cu. ft.
20.6–97.5 cu. ft.
Max Seating Capacity
8 Occupants
8 Occupants
Exterior Length | Width | Height
199.2 | 78 | 69.5
201.4 | 78.3 | 72.1
The Grand Highlander is a slightly larger vehicle, which may make it a better choice for older families. Neither model has exceptional third-row legroom, but children will outgrow 32.1 inches of legroom more quickly than one might expect. Nevertheless, both models are built around the third row, unlike some other top-selling midsize SUVs with barely functional third rows. The biggest difference is the Grand Highlander’s expansive cargo space – the trunk space is roughly on par with the Palisade’s, but folding down the second and third rows opens up 10.8 cubic feet of additional space.
The base trims make a strong practical case – but if you’re weighing spending $55,000 or more, the interior quality comparison becomes just as important as the cargo numbers.
The Calligraphy Black Ink Brings Genesis-Level Luxury for Thousands Less Than Toyota’s Top Trim
2026 Hyundai Palisade Hybrid Calligraphy Interior Dashboard ViewHyundai
Despite being the more affordable option, Hyundai has introduced some notably luxurious models recently. Its most expensive trim, the Calligraphy Black Ink, sets itself apart with black metallic paint on the lower grille and side sills, plus black side rails, and other accents. The trim comes with power heated side mirrors, door handle welcome lights, 21-inch black alloy wheels, and more.
On the inside, Hyundai spares little expense, outfitting the top trim in Nappa leather upholstery, heated and ventilated front and second-row seats, a “relaxation mode” for the front seats that reclines the seatbacks and extends the thigh support, heated third-row seats, and much more. Owners can fold the second and third rows with a single-touch button from the trunk, too. It even comes with a 14-speaker Bose audio system and an in-car intercom, so the driver can communicate with third-row passengers with ease.
“Hyundai wanted the Palisade’s interior to feel comforting and family-focused. The brand achieved that by evoking ‘timeless mid-century furniture’. Think high-end, comfortable couch from Restoration Hardware. The Palisade’s interior uses plush materials.” – Ty Duffy, CarBuzz (2026 Hyundai Palisade Drive Review)
The Toyota Grand Highlander is also a compelling option at around $60,000. At that price, buyers may also want to consider a Lexus TX or a used Lexus LX. Going the luxury Toyota route means buying the Hybrid Max Platinum. It rides on 20-inch two-tone silver and black wheels and benefits from a dual-tip exhaust system. It also comes with power-folding heated side mirrors with blind spot monitoring, an acoustic noise-reducing windshield and front side windows, and more.
It gets even better on the inside, though. The cabin is adorned in leather and “ultrasuede”. It also features heated and ventilated front and second-row seats, tri-zone climate control with a separate second-row control panel, seven-occupant seating with second-row captain’s chairs, a power tilting/sliding panoramic roof, and much more. It’s all great, but keep in mind this will cost at least $2,495 more than the top hybrid Palisade trim.
Powertrain And Fuel Economy Comparison
2026 Hyundai Palisade driving front angleHyundai
Choosing between the gas-only and hybrid models may be more difficult than expected. The Palisade comes with either a 3.5-liter gas V6 that makes 287 horsepower and 260 lb-ft of torque, paired with an eight-speed automatic transmission that sends power to the front or all four wheels. It gets up to 19/25/21 MPG city/highway/combined in any trim with a front-wheel drive configuration.
However, you can also choose a 2.5-liter turbocharged inline-4 hybrid powertrain that makes 329 hp and 339 lb-ft of torque. The EPA estimates its fuel economy reaches 33/35/34 MPG in the SEL trim with a front-wheel drive configuration.
“…it delivers adequate power smoothly. The steering is perfectly weighted. And the suspension controls the car’s weight admirably in all but the hardest and fastest of corners. Normal driving feels relaxing, and the car performs well when things get more spirited.” – Ty Duffy, CarBuzz
Toyota offers three powertrain options in the Grand Highlander. Entry-level models use the 2.4-liter turbocharged inline-4 that makes 265 hp and 310 lb-ft of torque, which returns up to 21/28/24 MPG with FWD. Buyers can opt to spend a little more on a 2.5-liter hybrid four-cylinder that makes 245 hp, returning up to 37/34/36 MPG with FWD.
At the high end, the Max trims come with a 2.5-liter turbocharged I4 hybrid that makes 362 hp and 400 lb-ft of torque. The Max models are only available with AWD, though, meaning they only return up to 26/27/27 MPG.
Nobody Can Beat Hyundai’s Warranty Program
2026 Hyundai Palisade rear angle with trunk openHyundai
Hyundai and Toyota Warranty Comparison
Warranty Type
Toyota
Hyundai
Powertrain Limited Coverage
5 Years / 60k Miles
10 Years / 100k Miles
Anti-perforation Coverage (Rust Warranty)
5 Years / Unlimited Miles
7 Years / Unlimited Miles
EV/Hybrid Battery Coverage
10 Years / 150k Miles
10 Years / 100k Miles
Certified Used Powertrain Coverage
7 Years / 100k Miles
10 Years / 100k Miles
Reliability is everyone’s top concern when considering a Hyundai over a Toyota, but first owners and those who buy certified pre-owned models need not worry. Hyundai/Kia/Genesis offer the best warranty coverage in the business, and Toyota doesn’t quite reach their level.
Would You Choose A Hyundai Over A Toyota?
2026 Hyundai Palisade Hybrid Calligraphy Interior Steering Wheel ViewHyundai
It is no surprise that the Palisade sold thousands more units than the Grand Highlander last month, and it appears likely to maintain that trend. It’s cheaper, but it doesn’t feel that way. Its base model is fairly simple, as expected, but the midsize SUV takes on a Genesis-like quality at its top trim level. Toyota can mostly keep up in the comfort department, but buyers are forced to spend thousands more to get there. Hyundai’s exceptional warranty coverage also helps alleviate any lingering reliability concerns.
Sources: Toyota, Hyundai
