Hyundai Palisade vs Lexus LM 500H

What's the difference?

The Palisade Calligraphy is a nice SUV to drive on road. It’s composed and refined, and as an eight-seater, it makes a sensible daily driver, especially for those of us with more than a couple of children.

My teenagers loved this Palisade because there were charge points for everyone – namely them – and that second row, according to them, is very comfortable.

It has a few niggles, but, while it’s not perfect, the Palisade Calligraphy does so many things so well that you are willing to forgive it its few quirks and AWD gives it a handy advantage over any of its 2WD rivals. 

The Lexus LM 500h is luxurious, comfortable, practical, easy to drive and expensive. While it may appear to be the ultimate family car, with only four seats it's limited in terms of how many kids and their friends you can carry. On top of that, the privacy screen introduces accessibility issues to the kids you wouldn't encounter on other vehicles. If you are thinking of a Lexus people mover as your next family car I'd suggest looking at the LM 350h which has seven seats and no privacy screen. If you’re looking at a business class executive van the LM 500h would be perfect. 

This is a nice looking SUV in a generic, non-offensive way.

The Calligraphy is in the top ranks of the Palisade range, so, in terms of design you'd expect it to be a bit easy on the eye and it is, especially the exterior, from the big grille all the way back.

Our test vehicle’s colour looks a lot like black to me. Hyundai calls it 'Robust Emerald' and I started to not strongly dislike it after a few days.

The interior has a real premium look and feel to it with Nappa leather accents and expanses of soft-touch surfaces adding to that prevailing overall impression.

This is a cleanly designed space – it's really quite easy on the eyes – and it's comfortable to be in. Bonus: the build quality is great, it all feels so well put together. 

This Palisade is also a prime example of a car maker effectively blending high-tech displays and controls into a cabin in a low-key way – nothing really seems out of place here and everything is easy to locate and operate.

The LM 500h doesn't look real. More like a concept vehicle with its vertical face wearing that enormous grille. Feels like if you watched it for long enough you’d catch it transforming into some kind of robot. Yet, at the same time its styling is elegant and prestigious.

I have a confession to make. I used this Lexus as my office. Its interior is that comfortable and spacious. I'm also a parent and there were times where it was the quietest place to get some work done.

It also let me observe people's reactions as they walked past with their dogs not knowing what was going on inside behind those tinted windows. The people that noticed were clearly car enthusiasts as they knew what they were looking at and couldn't pass without gaping it awe.

The LM 500h’s interior is superbly plush with thick carpets, beautiful copper metallic trim and nappa leather seats.

As I’ve said, the cockpit up front is less luxurious than the extravagant first class section in the back behind that dividing wall.

And yes, I’ve seen large screens before but nothing that stretches the width of the vehicle.

Once you've spent any time in the Palisade Calligraphy cabin, you get to realise just how comfortable it is. 

The driver and front-passenger seats are very comfortable and very supportive, and these are both power adjustable. The driver’s seat is 12-way power-adjustable so you can precisely dial in your position.

There are so many handy features to the interior that if you can find something that's missing, I want to hear about it. 

There are plenty of storage spaces and cupholders* and lots of charge points, including a USBs up the front and two USB-Cs for each row’s passengers.

* Hyundai reckons there are 17 cupholders throughout the Palisade interior but I didn’t count them so we’re taking the company's word for it.

The second row is quite spacious and on the right side of comfortable and the passengers have access to sufficient controls including climate control. 

The outboard seats are heated and there are controls for the fan on the back of the centre console. There are USB-C points on the inside edges of the front seats for the second-row passengers, a couple of cupholders either side as well as sun shades on each second-row window.

That’s helpful if you're trying to get your little ones to sleep, or at least prevent the sun from blasting them in the eyes. 

In terms of child restraint points in the second row, you have three top tether points and two ISOFIX anchors and in the third row you have two top tethers and one ISOFIX location. 

The third row is the domain of children, or two adults if you don't like them. There's not a lot of room. I racked the second row forward just a bit to give me some much-needed knee room.

There are a couple of cupholders either side in the third row and passengers there do have access to air vents. This is sufficiently comfortable for children, but it's a no-go zone for adults. 

With all three rows in use, there is a claimed 311 litres of cargo space in the boot area, which doesn’t mean a lot until you can see what fits in there, for better or worse.

Now, normally in a Family review, you might expect to see groceries and maybe a pram in the rear cargo area as an illustrative measure of what you can or cannot fit in there. Well, that’s not my style.

This is an AWD vehicle, and I drive on dirt roads as part of any AWD test, so I wanted some items from my vehicle-recovery kit onboard, including a set of four MaxTrax (vehicle-recovery boards, if you don’t know already), an air compressor (to re-inflate a punctured or intentionally deflated tyre), a first-aid kit, and a tyre-puncture repair kit.

All of these things fit easily into the rear cargo area with the third row up and theoretically in use.

That listed cargo space increases to 704 litres with the third row stowed away.

Then, with the second and third rows down you’re at 2447 litres.

Kerb weight is 2070kg and GVM is 2755kg, so you have a little bit of wiggle room in terms of how much you can pack onboard. A full-size spare sits under the body at the rear. 

You might be able to take Lexus out of Toyota but it's very hard to take Toyota out of Lexus and this particularly applies to the practicality of the LM 500h.

Every day I discovered new compartments, tray tables and storage areas. There are so many cabinets, lockers and hidey holes that we almost left my belongings (an entire family of plushie toy capybaras) behind because there are so many places to check.

Of course, I'm talking about the rear compartment here because up front there's not much storage. In fact, it proved to be quite a problem in that I had nowhere to put my bag with somebody sitting next to me and no area behind the front seats to stow it, either.

Talking of seats, the LM 500h only has four of them, with two up front and two in the rear. Up front, the seats are supportive and large, but the rear seats - those are, well... have a look at the images.

We’re talking two large captain's chairs that look as though they’ve been removed from the first class section of a plane.

And while this might be suitable for businesses shuttling a couple of executives to and from meetings, for a family, even with two children, the extra couple of seats a third row offers would come in handy.

The LM 350h has seven seats over three rows and no privacy screen. A far better choice for families.

For device charging there are USB ports up front and in the rear. There are wireless phone chargers for those in the back seats but not up front.

The LM 500h has a cargo capacity of 752 litres with all seats in place.

The Lexus LM 500h sits at the top of its range and is without a doubt one of the most expensive people movers on Earth with its list price of $220,888.

As you would imagine the standard features list is as extensive as it is extravagant.

For starters, while the regular LM 350h has two rows of seating in the rear (seven seats all up, including the front two), the 500h has the third row removed and just two super luxurious and enormous fully reclining seats fill the entire space. It’s like a theatre back there.

That theatre theme keeps going with a media screen in the back so large it stretches the width of the vehicle. Seriously, it's a 48-inch screen to watch movies or connect to your device.

The sound system is probably the best I’ve experienced - a spine tinglingly incredible 23-speaker Mark Levinson set-up.

What else can I tell you? Those rear seats are upholstered in beautifully soft semi-aniline leather. They’re heated and ventilated with a massaging function and... ridiculously comfortable.

There’s four-zone climate control, windows which have an electronic shade that turns the glass opaque, there are wireless phone chargers in the doors and carpet throughout so thick you sink down into it as you step inside.

Our LM 500h was upholstered in the 'Solis White' leather which also brings contrasting and mesmerising copper metallic trim.

Oh, and there’s a wall with an electric glass screen that can be raised or lowered to separate the rear passengers from the driver.

I should have mentioned this earlier. The kids loved it, but these parents spent a lot of time telling the 10- and three-year old not to put the screen up again.

The rear occupants, aka the kids, can also lock the screen in place. Which they did, and so sound proof is the dividing wall that we can only just hear their uproarious laughter.

Up front, the cockpit is comfortable but it’s clear all the space and luxury is for those being driven around.

Still, the front seats are leather with heating and ventilation, there’s a 14-inch media screen and 12.4-inch digital instrument cluster, plus a head-up display. Sat nav, Apple CarPlay and Android Auto are also standard.

Our test vehicle has a 2.2-litre four-cylinder, common-rail, turbo-diesel engine sending 147kW (at 3800rpm) and 440Nm (at 1750-2750rpm) to all four wheel via an eight-speed automatic transmission. 

This Palisade has an AWD system called 'HTrac' (Hyundai Traction) and it operates on a similar principle to most other AWD systems in city-going SUVs, and that is it directs power to the appropriate wheels to optimise traction. 

This vehicle also has multiple drive modes – 'Comfort', 'Sport', 'Eco' and 'Smart' – for on road and 'Sand', 'Mud' and 'Snow' for when you go off-road.

These off-road drive modes are absolutely no substitute for 4WD, but they are fine for when conditions get slippery, for example, if there’s a little bit of rain on the bitumen or the dirt track becomes slightly muddy.

The LM 500h is a petrol-electric hybrid with a 2.4-litre four-cylinder turbo-petrol engine which makes 202kW/460Nm and works in concert with two electric motors.

The front motor makes 64kW/292Nm and the rear makes 76kW/169Nm. The combined maximum power output of the two motors and the petrol engine is 273kW.

The LM 500h is all wheel-drive and has a six-speed automatic transmission.

Fuel consumption is listed as 7.3L/100km on a combined cycle. On this test, I recorded 9.0L/100km. 

The Palisade has a 71-litre fuel tank. So, going by that on-test figure, you could expect a driving range of almost 800km from a full tank.

But remember you’ll be carrying more people and gear onboard so fuel economy will be affected accordingly.

Lexus says after a combination of urban and open roads the LM 500h should use 6.6L/100km. In our own testing we found consumption was higher at 9.4L/100km.

Worth noting my driving environment was mainly a hilly suburban one filled with school drop offs. Achieved some personal bests this week, with one long run to Sydney’s outskirts, only to return in nightmarish peak hour traffic.

Premium (95 RON) fuel is required and the tank size is 60 litres. In theory the driving range is a smidge more than 900km, which drops to around 640km using our real-world average.

This is an easy driving wagon. It's nice and comfortable, it's refined, it's always composed and it's always controlled and it's just an all around nice drive from the engine and the auto, which are a really good pairing. 

As mentioned earlier, kerb weight is listed as 2070kg and this Palisade has an 11.8m turning circle, so it’s not an insubstantial vehicle to steer around.

It’s not very dynamic, not very lively, but it has a nice consistent feel to it all – and being composed and consistent is important with something that's intended as a people mover, as a family vehicle because that's what you want. 

Ride and handling are well sorted out and, though there’s a touch of firmness to the suspension, ride quality is smooth in general terms. 

There are the paddle shifters on the steering wheel if you want a little bit more input into shifting up and down in the automatic transmission, but it’s rather clever so you can just let it do its job as it does that nicely. 

There are four on-road drive modes – Comfort, Eco, Sport and Smart. Smart tweaks vehicle characteristics such as engine output, transmission settings and braking to suit your driving style, and depending on which of the other modes you select, it will adjust those characteristics and/or more to suit the terrain or the conditions you’re driving in. 

And while this Palisade is impressive in terms of performance and driving characteristics, there are a few niggles. 

Acceleration is a bit laggy and it takes a heavy right boot to get the Palisade moving at pace.

Some of the driver-assist tech is often abrupt and intrusive. The traffic-sign recognition (or speed limit assist) is clunky. It detects and reacts to signs that don't apply at that time of day, say school zone signs, or it picks up on signs that don't apply to that section of road.

So, it's forever chopping and changing between speeds you should be at and speeds you shouldn't. You can adjust those settings or switch them off in the Hyundai app via the touchscreen multimedia system, but those settings return as defaults when you next start the vehicle. 

Now for some dirty talk. The Palisade Calligraphy is an all-wheel drive SUV wagon that does sufficiently well on terrain that would be moderately challenging for a 2WD vehicle. 

Our light-duty test track is sandy and there are some very shallow wheel ruts – nothing serious – and this Palisade handled all of the minor challenges well.

Ride quality over some of the lumpier sections was good. It's a bit on the firm side as you'd expect because this is a SUV designed for the suburbs not the Simpson, but it is perfectly reasonable on a very easy dirt track in dry conditions. 

And that’s the good thing about an AWD over a 2WD vehicle; you have that extra degree of traction, especially if you get into a traction-compromised situation such as a slippery wet bitumen road or a slightly muddy, but otherwise well-maintained, gravel route. 

This Palisade has three terrain driving modes – Sand, Mud, and Snow – which each adjust throttle response, engine output, and the automatic transmission, among other things, to ensure you keep moving safely with controlled momentum. 

If you’re planning to use your daily driver / family mover as a towing platform it’s handy to note that the Pailsade’s towing capacity is 750kg (unbraked) and 2200kg (braked).

Quite simply, driving the LM 500h is like piloting a limousine on stilts. Superbly comfortable, but with an elevated driving position that offers outstanding forward and side visibility, the LM 500h is an easy vehicle to drive for long periods of time.

A digital rear vision mirror means visibility behind is good and unobstructed by the privacy screen or the seats.

The drawbacks are down to the lack of space up front, with the driver’s chair limited in its ability to recline or slide back due to the bulkhead behind it.

And that's compounded by the lack of cabin storage for bags if the front passenger seat is taken.

As for the rear passengers there aren't many people movers offering this level of comfort, except perhaps the Zeekr 009.

Variable suspension that adjusts continuously keeps the vehicle composed and provides a high level of comfort for those in the rear. At the same time, the LM stays nice and flat through roundabouts while remaining civilised over speed bumps.

And then there's the acceleration, which, while not supercar-like is incredibly brisk for a van. The all-wheel drive system provides outstanding traction in wet and slippery conditions, too. 

Our family used the LM daily for everything from school runs to shopping trips and weekends away and not only was it fun to drive, our lucky rear passengers enjoyed sitting high and being able to see clearly out their windows along with the luxury of a giant movie screen.

The Lexus  LM 500h is yet to be tested by ANCAP so it doesn't have a safety assessment score. There is, however, a high level of safety tech onboard including AEB which can detect pedestrians, cyclists, motorcyclists and other vehicles, emergency steering assist, lane keeping assistance, road sign recognition, rear cross-traffic alert, front and rear parking sensors as well as six airbags.

For child seats there are ISOFIX points and top tether anchor mounts on the two rear seats. We have a forward facing child seat and found it easy to install.

A space-saver spare wheel is located under the boot floor.

Every Palisade is covered by a five-year/unlimited kilometre warranty and roadside assistance is complimentary for the first 12 months, renewed annually (for the life of the vehicle) if you have your Palisade serviced at an authorised Hyundai dealer. 

Service intervals are set at every 12 months or 15,000km, whichever occurs soonest, and pre-paid plans are available over three, four or five years.

The latter costs $2445, which equates to $489 per service. Not cheap but not outrageous. 

Lexus covers the LM 500h with a five-year, unlimited kilometre warranty. 

The Lexus Encore Platinum program is complimentary for LM owners for three years, providing 24-hour roadside assist, a loan vehicle or pick-up/return service at service time, 'On Demand' vehicle evaluation options, valet and airport parking benefits as well as exclusive offers and event opportunities.

Servicing is recommended annually or every 15,000 kilometres, and impressively, pricing is capped at $695 per service over five years.