Gmc Yukon vs Hyundai Palisade

What's the difference?

The 2025 GMC Yukon Denali is a big, comfortable, eight-seat 4WD with few rivals in the Aussie market. However, while it may occupy its own niche, it doesn't offer enough in terms of premium look and feel and towing capacity over what could be considered its rivals – and it all comes back to that price tag. 

While it lacks a competitive warranty and its price puts it way out of reach of a lot of 4WD buyers, if you are in the market for a big premium-style wagon with a V8 and eight seats – and the Nissan Patrol and Land Rover Defender 130 aren’t your cup of tea – then the Yukon Denali just might be the right choice for you.

But when all is said and done, for the price of the Denali, you could buy two Nissan Patrols – maybe not brand-new ones – and a camper trailer and a couple of cartons of beer. 

So, is the new Palisade a luxury mainstream family transporter or a premium-priced SUV without the premium badge?

The reality is, it’s somewhere in the middle. The $14,000 price rise is a huge step up for family buyers, likely an insurmountable sum for many, which leaves them looking at the more affordable (but smaller) Santa Fe, waiting for a cheaper Palisade variant or going somewhere else entirely.

Having said all that, there’s no question, for those who can afford it, the new Palisade is a clear upgrade over the old model in every way. Especially the premium look and feel, which is a leap up, but also the driving experience, with its combination of potent but efficient powertrain and locally-tuned suspension.

So, for those who can afford it, the Palisade Calligraphy will provide a luxury experience at a lower price - which means it does offer good value, just at a higher price.

Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.

The 2025 GMC Yukon Denali is 5337mm long (with a 3071mm wheelbase), 2378mm wide, 1943mm high and has a kerb weight of 2813kg.

Suffice it to say, it’s big. 

The signature Denali grille – with LED headlights and chrome accents – is the size of a house and it’s eye-catching. 

In terms of design, the rest of the Denali is standard SUV, but it's so massive it can't help but have plenty of presence on the road. 

This 4WD has 24-inch rims, which are not suited to off-roading at all, but I’ll get to that later.

The Denali’s dual exhaust system, with polished stainless-steel tips, adds to the street-cool aesthetic. 

The rest of the Denali exterior works – but it’s an in-your-face kind of success. 

Inside, the space is cavernous and with leather upholstery, wood-look trim and soft-touch surfaces you’d expect it to feel like a plush, well-appointed cabin. But it doesn’t quite hit the mark. 

Sure, all three rows of seats offer enough in terms of comfort and amenities but, for a $175,000 vehicle, the cabin lacks a distinctive premium feel, as you'd assume it should in a vehicle at this price point. That's a bit of a disappointment.

Unlike many of its rivals that adopt a common design theme, Hyundai has made sure each of its models is dramatically different visually.

While there are some common elements that tie them together, comparing the new Palisade to the rest of Hyundai’s SUV range it’s clearly very different. 

For the Palisade that means a deliberately big and bold exterior, with the vertically stacked headlights and large grille to create a unique look compared to either the Santa Fe or Ioniq 9. It’s the same at the rear, with more vertically stacked tail-lights. 

That bold, premium design theme carries over to the interior, where there are some unmistakable Hyundai elements - like the steering wheel - but the soft, curved lines of the dashboard give it a distinct look compared to anything else the brand is offering at the moment.

Hyundai says the interior is inspired by premium furniture design and that rings true, but it’s also a noticeably tall dashboard, which gives a lot of visual depth to the interior.

To emphasise the premium furniture design and the flagship-nature of the Calligraphy, there are four different colour options for the Nappa leather interior - black, brown, dark charcoal (with brown stitching) and light grey/dark navy.

The Denali has retractable sidesteps, which is a big help to hobbits, such as me, and it also has big grab handles, again a welcome addition for the purposes of easier ingress for those on the wrong side of tall.

Once you climb inside, it’s easy to appreciate the fact that this wagon’s interior is vast, functional and comfortable, with plenty of storage spaces for everything – glove box, centre console, sunglasses case, door pockets etc – and plenty of charge points for your array of smart devices, even a wireless charge pad. 

It’s a well-designed cabin but, as mentioned earlier, the Denali lacks the prestige fit and finish and even build quality usually showcased in something at this price-point.

Instead, there are expanses of hard plastic throughout, storage receptacles with flimsy lids, and lacklustre fit and finish here and there.

The vertically-oriented 16.8-inch touchscreen multimedia system is simple enough to use, even when the road gets bumpy, although it sometimes took a few stabs of my finger to get the system to register a command.

Climate control switches and the like are located under the screen.

The three rows of seats offer more than adequate levels of comfort – the front seats are heated and ventilated and the second row’s outboard seats are heated – and each row also has the appropriate amount of amenity to suit its occupants, including cupholders, USB-C sockets, map pockets and the like.

The second-row seats even have 12.6-inch HD colour touchscreens – one on the back of each front-row headrest – with which to enjoy… whatever. Those units also have wireless headphones so everyone else in the vehicle doesn’t have to listen to… whatever.

Those in the third row get air vents, a USB-C plug and two cupholders on both sides. 

Rear cargo volume with all seats up is 722 litres. With the second row folded that number expands to 2056 litres, and with only the front seats left standing you have a 'yuge' 3480 litres to play with.

The boot area has tie-down points, a shallow section of underfloor storage and plenty of packing potential. The tailgate door is power-assisted with remote open and close.

As I mentioned, the Denali’s interior is very functional and very comfortable and that includes the second and third row, which offer plenty of space. 

Overall, my thoughts on the Denali’s cabin interior boil down to “massive”, “comfortable” and “feels cheap”.

The new Palisade is bigger in every dimension compared to the old model, and that helps translate into a roomy cabin, which in turn does help make it feel more premium.

As mentioned earlier, the Palisade comes with Hyundai’s Digital Key 2.0, which allows you to have a virtual key on your compatible smartphone, so you can lock/unlock and start the car without a physical key. The new fingerprint scanner, which is a small circular scanner in the centre console, allows you to program your Palisade to start by pressing your finger on the scanner.

While the Digital Key is a great concept and has obvious practical benefits, the fingerprint scanner doesn’t make much sense when you can also start the car by pressing the ‘start’ button.

Anyway, once you’re inside, the driver is treated to Hyundai’s ‘Ergo-motion’ seat, which can provide on-the-go massage. Both front seats are the brand’s relaxation seats, which can recline into a more comfortable position if you need to take a nap (obviously not when you’re driving).

In the second row the Palisade comes standard with a three-person bench, but for $1000 you can swap that out for a pair of captain’s chairs. Hyundai expects the split between these to be an even 50-50.

The third row is also a three-person bench, which means the Palisade can accommodate up to eight occupants, if needed. The third row would only accommodate three adults at a squeeze, but would be fine for younger children.

The second row seats can tilt out of the way at the press of a button, to make getting into the third row easier.

What’s really impressive about the Palisade Calligraphy cabin is the level of detail paid to making sure each seat is well looked after. Naturally there are cup/bottle holders and other small item storage spaces, but both the second and third rows get air-conditioning controls as well as heated seats (for the outboard positions), plus there are six 100W USB-C ports spread around the cabin. The front seats are heated and ventilated, and there’s also a UV sterilisation compartment in the front as well as a wireless charging pad.

Out the back the boot is a respectable 300 litres with the third row in use, but it expands to a roomy 712 litres with the third row stowed. 

If you do need to fold down either the second or third row seats, you can do it at the press of a button in the boot. There’s also a 240-volt household outlet in the boot which allows you to run small electric devices.

Hyundai has opted to launch with only the Calligraphy grade for now, but that won’t be the end of the Palisade range. The more rugged XRT Pro variant will be coming in 2026, but no details are locked in just yet in terms of timing or pricing.

So, for now there is just one Palisade to pick, the Calligraphy priced from $89,900 (plus on-road costs). That’s a whopping $14,000 more expensive than the model it replaces, which is a huge jump regardless of the many changes Hyundai has made.

To be fair to Hyundai, the range-topping Kluger Hybrid Grande will set you back $85,135 (plus on-roads), so they’re in the same ballpark. But both are quite pricey for mainstream, family SUVs, especially in the current economic times.

Fortunately, Hyundai has been very generous with standard equipment, befitting the Calligraphy badge. This includes 21-inch alloy wheels, LED headlights and tail-lights, sunroof, a 14-speaker Bose sound system, leather-appointed upholstery, inbuilt navigation as well as Apple CarPlay and Android Auto. There’s also Hyundai’s 'Digital Key 2.0', which launched on the recent Ioniq 9 and an all-new fingerprint scanner - more on those below.

The GMC Yukon Denali has a naturally-aspirated 6.2-litre V8 petrol engine – producing 313kW and 624Nm – and that’s matched to a 10-speed automatic transmission.

This is an impressive set-up – the Denali is punchy off the mark, smooth and refined at highway speeds and overall it offers a composed and comfortable driving experience.

The Denali has a full-time 4WD system, selectable driving modes include 'Normal', 'Sport', 'Off-road' and 'Tow' and an electronic limited-slip differential is standard.

Hyundai has replaced both the old 2.2-litre turbo-diesel and the 3.8-litre V6 petrol with an all-new hybrid powertrain.

Officially known as the 'TMED-II' hybrid system, the set-up combines a new 2.5-litre turbocharged petrol engine with a freshly developed hybrid system that integrates two electric motors, instead of just one.

It’s a very complex set-up that Hyundai spent many spreadsheet graphics explaining, but in simple terms, the two motors are mounted between the engine and the transmission and one motor is dedicated to creating power and the second one to drive the wheels.

The end result is the new Palisade makes a healthy 245kW of power and 460Nm of torque, whilst also being quite fuel efficient.

Obviously, with such a big vehicle – almost three tons – driven by such a big V8 engine, fuel consumption is a concern. The 2025 GMC Yukon Denali has a listed fuel consumption figure of 12.8L/100km (on a combined, urban/extra-urban cycle).

I recorded 16.2L/100km on this test. I did a lot of high- and low-range 4WDing and this wagon was never working hard.

The Denali has a 91L fuel tank so, going by my on-test fuel-consumption figure, you could reasonably expect a driving range of about 560km from a full tank. 

Hyundai claims this new hybrid set-up allows for a short amount of all-electric driving range, although it doesn’t reveal how far, but its main priority is to improve fuel economy while creating a viable alternative to the increasingly unpopular turbo-diesel engines.

Which it arguably manages to do quite well. Despite being a full-size SUV capable of accommodating up to eight occupants, the Palisade has a claimed fuel economy rating of just 6.8L/100km, which is an impressively small number for such a sizable vehicle.

While we couldn’t achieve that number on our predominantly open-road test drive, we still returned a solid 8.6L/100km, which is good given the conditions.

The Palisade is fitted with a relatively large 72-litre fuel tank, which means if you can hit the official claim, there is a theoretical driving range of more than 1000km.

The Denali is imported to Australia as a left-hand drive vehicle and then Walkinshaw's subsidiary company Premoso remanufactures the US 4WD wagons to right-hand drive at their facility in Clayton, Victoria. 

And that mob has done a commendable job.

Firstly, the Denali is very impressive on general driving duties – settled and composed, that V8 just rumbles along. It’s pretty close to flawless on the open road - smooth and refined. 

But off-road is a different story – especially in low-speed technical low-range 4WDing – and a lot of that has to do with the Denali’s sheer bulk and its 24-inch wheels.

The big pizza plate rims and paper-thin Bridgestone all-season tyres (285/40) aren't suited to four-wheel driving as they don’t offer the grip of a decent all-terrain and you can’t drop air pressures because there isn’t enough tyre there. Worth noting the spare is a Maxxis Bravo HT-750 (265/70R17).

In its favour, though, the Denali has a range of drive modes – one of which is Off-road and that seems well calibrated for a variety of 4WD situations – as well as high- and low-range gearing and an electronic limited slip diff.

Steering has a nice balance to it at low speeds, throttle response is quite impressive and controlled. And you can call on that 624Nm from the big 6.2-litre V8 pretty much as you see fit, and it delivers it smoothly and in a controlled fashion. 

This top-shelf variant has air suspension – that does some levelling out of even major imperfections in the road or track surface – and it does have a special damper system also working away to even out ride and handling. 

In terms of off-road measurements, the Denali offers approach, departure and rampover angles of 24.8 degrees, 20.5 degrees and 22.5 degrees, respectively.

Ground clearance is listed as 205mm, wading depth is not quoted, but likely a guesstimated 700-800mm, and turning circle is 12.4m.

And again, this is a big vehicle – 2813kg – so it requires more consideration, more patience, more skill and probably more experience than perhaps some smaller four-wheel drives do. 

The Denali's payload is listed as 634kg, which is not a lot for a massive vehicle like this. Its towing capacities are 750kg (unbraked) and 3500kg braked.

If you do, however, put a 70mm tow ball and a weight-distribution hitch on the Denali, you can tow as much as 3628kg legally (braked).

That's not a lot more than something like the Nissan Patrol, which is 3500kg, or the equivalent 4WD wagon or ute available in Australia already. So the extra towing capacity in the Denali is not that big of a selling point. GVM is 3447kg and GCM is 6577kg.

Ultimately, even though the Denali has sound four-wheel drive mechanicals and reasonable off-road traction control, it's hampered by its gargantuan dimensions and let down by its 24-inch wheels and paper-thin tyres.

If you got rid of the standard wheel-and-tyre combination and replaced it with a set of decent, aggressive all-terrain tyres on 17 inch or 18 inch, or even (if you had to) 20 inch wheels, those changes would go a long way to making this over-sized 4WD capable in some off-road scenarios.

In its current state, however, the Denali is a tow vehicle playing at 4WDing rather than the other way around.

While it may look like a small engine of paper, the hybrid system provides good performance. It offers plenty of punch when you need it, not labouring up hills or when overtaking. But it’s also very quiet and smooth at lower speeds and when cruising, so the powertrain gets good marks.

The Palisade is also pleasant to drive thanks to its locally-tuned suspension and steering. Hyundai has returned to a local ride and handling program, after wavering in the aftermath of the pandemic. Engineers from Hyundai’s Korean headquarters came out to assist and ensure it was as well suited to our unique road conditions.

The result is a large SUV with good body control but also good compliance, which means it feels responsive to driver inputs but the suspension is still able to soak up bumps with relative ease. At no point does it feel crashy or harsh, instead it has a very relaxed driving character.

Safety was a controversial topic with the first-generation Palisade, with some minor safety systems missed during the rush to get it secured in right-hand drive production, ANCAP decided to test it and publicly slam Hyundai for offering a four-star model. Only to quickly upgrade it to five-stars when Hyundai added the missing safety tech, as planned, when it did the mid-life refresh.

So, after ANCAP’s questionable approach last time, Hyundai took no chances this time around and is confident it will score a maximum five stars when it is tested. No stone was left unturned with the addition of all the required active safety systems and even deleted the central lamp that runs across the grille in other market models.

It has all the usual suspects, including autonomous emergency braking, lane change assist and rear cross-traffic alert, but also gets the more advanced systems like forward junction assist. There are plenty of passive systems, including airbag coverage for all three rows.

Unfortunately, Hyundai still has some work to do on implementing these systems in a seamless manner. The brand has made some improvements, but there are still a lot of ‘bings’ and ‘bongs’ when you change speed limits, veer too close to a lane marking or similar. 

It’s great to have these safety systems, but only if they work well enough so you leave them on and pay attention to them.

The 2025 GMC Yukon Denali has a three-year/100,000km warranty – which is on the wrong side of ordinary in this day and age.

Roadside assistance is available for three years but check with your dealership for more details on that.

Servicing is scheduled for every 12 months or 12,000km. The first three workshop visits come in at $398.33, $420.33 and $506.48, including GST. Not outrageous for such a hefty beast.

Hyundai has recently introduced a seven-year, unlimited kilometre warranty, which covers the new Palisade.

Of course, Hyundai is one of the best established car brands in the Australian market, and has a nationwide dealership network so factory servicing should be easy for most owners. This is a major advantage in these changing times with some many new brands looking to make a mark in Australia with modest foundations.

Service intervals are every 12 months or 10,000km, the latter is a bit shorter than average. And the capped price servicing plan only runs for five years. Costs vary from $397 for a minor check-up to $674 for your fourth visit, but over the course of the five years you’ll pay out $2600.