Navigating the actual cost of car ownership in South Africa goes far beyond the initial purchase price. This is especially true for a large SUV like the Hyundai Palisade. To determine if a Palisade costs too much, you need to analyse its total cost of ownership (TCO) against its direct competitors and top-selling SUVs.
Related: Hyundai Palisade 2.2D 4WD Elite (2023) Road-Trip Review
TCO is a comprehensive measure that includes not only the financing and upfront costs but also recurring expenses such as fuel, insurance, maintenance, and the often-overlooked depreciation cost.
Ford Everest Wildtrak vs Hyundai Palisade vs Toyota Land Cruiser Prado: Here's our winner
Cost Breakdown
The Palisade is a premium, large SUV with a price tag to match. While it offers a luxurious and spacious experience, its ownership costs reflect its size and status.
Initial Purchase and Financing:
New Palisade models in South Africa are priced well over R1 million, but we recently removed them from the brand's price list. Recent and second-hand models have been listed with prices ranging from approximately R678 00 to R1 204 500.
Financing these vehicles can lead to monthly instalments of R20 000 or more, depending on the deposit, loan term, and interest rate.
Recurring Costs:
Fuel: The Palisade has a 2.2-litre turbodiesel engine with a claimed average fuel consumption of 8.2 L/100km. A large SUV with a powerful motor will naturally have higher fuel costs, especially given the high diesel price in South Africa.
Insurance: The Palisade will command a significant premium for its high value. The exact cost will vary based on factors like your location, driving history, and chosen coverage, but it will be at the higher end of the spectrum for a family vehicle.
Maintenance: The Palisade has a generous service plan, a 7-year/105 000 km plan. This helps mitigate service costs for a long time, which is a significant financial advantage. However, maintenance can be expensive once this plan expires due to specialised parts and labour costs.
Depreciation: The Palisade's depreciation rate is a critical factor. While it offers a strong warranty, its resale value can be moderate compared to some competitors. Cars generally lose 30-40% of their value after five years, and for a vehicle with a high initial price, this can amount to a substantial loss.
Top-Selling SUVs in South Africa
To assess if the Palisade is "too much," it's helpful to compare its TCO against some of South Africa's best-selling SUVs. These models represent different segments and price points, offering a clear market picture.
| Model | Price Range (R) | Fuel Efficiency (L/100km) | Key Ownership Advantages |
| Toyota Fortuner | R700,000+ | 8.0-9.5 | Known for exceptional reliability and the best resale value in the segment, retaining over 50% of its value after five years. |
| Ford Everest | R800 000+ | 8.5-9.5 | A strong rival to the Fortuner, it offers a competitive service plan and often benefits from lower insurance premiums than its main competitor. |
| Hyundai Tucson | R450 000- R600 000 | 5.5-6.5 | Praised for affordability, modern technology, and good fuel efficiency, making it a strong value proposition. |
| Haval H6 | R500 000- R650 000 | 6.5-7.5 | A value-packed contender with a competitive warranty and features at an accessible price point. |
| Kia Sorento | R770 000 - R1020 000 | 6.5 | Often seen as a direct competitor to the Palisade's price point, it offers excellent value, a strong warranty, and better fuel efficiency. |
Is the Palisade too expensive to own?
The answer depends on your financial situation and priorities. The Hyundai Palisade is a premium vehicle, and its cost of ownership is high. The initial purchase price and subsequent financing are the most significant factors, placing it in a different league from more common family SUVs.
You might find the Palisade costing you "too much" if:
You are primarily concerned with long-term running costs like fuel and maintenance outside the service plan.
You want a vehicle that holds its value exceptionally well, as the Fortuner, for instance, has a proven track record for minimal depreciation.
You are a budget-conscious buyer who could get comparable practicality and technology from a more affordable option like the Hyundai Tucson or Kia Sorento, with significantly lower upfront and running costs.
However, the Palisade's cost is justifiable if:
You prioritise a luxurious, spacious vehicle with premium features and a powerful engine.
You value the lengthy and comprehensive warranty and service plan that comes standard, which provides peace of mind for the first several years of ownership.
The purchase price is well within your budget, and you are not looking to recoup a high percentage of the vehicle's value at the time of resale.
Verdict
In summary, the Hyundai Palisade is a high-cost-of-ownership vehicle. While its generous service plan and warranty help mitigate some expenses, its high initial price, significant financing costs, and potential for greater depreciation than its more popular rivals make it a costly vehicle in South Africa. A top-selling SUV like the Hyundai Tucson, Kia Sorento, or even the ever-reliable Toyota Fortuner may be a better option for a more budget-friendly and value-conscious choice.
