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Long-Term Test: 2008 Hyundai Veracruz SE AWD

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  • 2008 Hyundai Veracruz Picture

    2008 Hyundai Veracruz Picture

    All-wheel drive was welcome during a weekend ski trip to Big Bear Mountain in California. | November 02, 2009

Road Test

Long-Term Test: 2008 Hyundai Veracruz SE AWD

Introduction

    0 Ratings
    Introduction
    Where were you in 1989?

    George H.W. Bush was moving into 1600 Pennsylvania Avenue, we were learning long division and Lexus was in the late stages of mitosis from Toyota. The fledgling brand promised luxury and reliability like the world had never seen from a Japanese company. The world was skeptical.

    Meanwhile, a scant three years after it had first started exporting cars to the U.S., Hyundai was trying to convince America that Korea could build a car that was cheap, yet wouldn't fail in a fiery collision before all the monthly payments had been made.

    Fast-forward nearly 20 years to a changed landscape, one where Toyota is the sales king, where Lexus has equaled Mercedes not only in quality and luxury but also in children named in homage. A world where the SUV went from macho off-roader to matriarchal soft-roader to plus-size wagons renamed CUV (crossover-utility vehicle).

    And Hyundai, now past its second decade in the U.S., confident enough with its products to offer what it calls "America's Best Warranty," has moved into the luxury arena with the seven-seat 2008 Hyundai Veracruz. It has leather upholstery, a big V6 and more standard features than Batman's belt, and can cost north of $35,000.

    The world is skeptical and we're here to help with a 12-month, 20,000-mile long-term test of the 2008 Hyundai Veracruz SE AWD.

    What We Bought
    The 2008 Hyundai Veracruz is available in three trims: GLS, SE and the top-of-the-line Limited. There are minor differences in option packages, but the basics are all the same. The 3.8-liter V6 makes 260 horsepower and 257 pound-feet of torque (the latter at a not-so-low 4,500 rpm) and it's matched with a six-speed automatic. Every trim level is available in either front- or all-wheel-drive configurations, the latter being a $1,700 option. The SE package appeals to our budget and has most of the options we wanted — and the fewest of the options we had no interest in.

    The Veracruz SE comes with standard rear-seat climate control, an AM/FM/satellite radio/MP3 audio system, audio controls mounted on the tilt-telescoping steering wheel, keyless entry with alarm, 18-inch wheels, foglights, a roof rack and a rear spoiler. Heated outside mirrors are a welcome piece of standard kit for when the outside temperature gauge (also standard) reads in the single digits. The SE AWD starts at $30,300.

    For our Veracruz, we broke from the trend set with our Buick Enclave and Mazda CX-9 and went for the $1,700 all-wheel-drive option. While large front-drive crossovers are fine here in SoCal, they can be challenged in a large part of the country. Fortunately the all-wheel-drive Veracruz is only 165 pounds heavier than its front-drive counterpart, and has nearly identical EPA fuel economy estimates: 16 mpg city/23 mpg highway for the front-driver, 15 mpg city/22 mpg highway for AWD. It should provide our editors with an option other than a full-size pickup should they venture somewhere with snow, rain or even dirt roads.

    Even with AWD on the list, we were still well below our budget — that's what Hyundai's about, after all. So we bypassed the cloth seats and added the Premium & Leather and Entertainment packages. We're sure that we'll use the heated leather seats far more often than the AWD lock button. The Premium part of the equation upgrades the stereo to an Infinity unit with a subwoofer and external amp. It also adds a 115-volt power outlet — the type you can plug real plugs into — and a back-up warning system.

    Safety is a key selling point in this market segment and a back-up warning system alone won't cut it. Stability control, traction control, ABS with electronic brakeforce distribution, tire pressure monitoring systems, active front head restraints, and six airbags will. The National Highway Traffic Safety Administration has given the Veracruz a five-star rating in both front and side impact crashes, and four stars for rollover protection.

    The entertainment bit breaks down thusly: rear-seat DVD with 8-inch screen, Infinity Logic 7 605-watt surround-sound audio system and a conversation mirror to keep tabs on rear-seat passengers. Checking that box on the order sheet clearly gets a lot of toys into the Veracruz, but it also removes $5,750 from your bank account.

    Carpeted floor mats were $125. They look nice, so we got them.

    While the 2008 Veracruz starts at $26,900, our nearly fully loaded model was $36,870.

    Those of you with highly keen senses and keener knowledge of the Hyundai Veracruz specification sheet will be puzzled by our decision to go with the SE and load it up instead of getting the pre-loaded Limited. The Limited, as you know, has all of the options we added, plus a proximity key, memory seats and an automatic air quality system. It was $380 more expensive and wasn't available in the Light Blue Titanium paint job that Editor in Chief Scott Oldham is so keen on, so we built what we wanted instead.

    Why We Bought It
    In our first drive of the 2007 Hyundai Veracruz, we came away impressed. Chief Road Test Editor Chris Walton said, "You have to say that Hyundai's ambitious attempt to target Lexus has worked out in almost every way where the Veracruz has been concerned." Moreover, Hyundai vehicles have always fared well in our comparison tests.

    At the same time, the previous Hyundai vehicles in our long-term fleet always get raves in the first few months when we talk about the quality/price ratio or just the quality in general. As the months pass, however, the tables turn and the little stuff starts to go. The leather in our Azera started to stain and fade before a year was out. It also had some questionable panel fitments.

    Our overall impression has been that Hyundai is on the right track. Its products are getting better and better as the years pass. Hyundai is again convinced that its newest product can take on the world's best, and do so at a bargain price.

    We'll spend the next 12 months with the 2008 Hyundai Veracruz SE AWD to see if the company has finally nailed it. Will the veneer fade, exposing a slightly flawed vehicle? Or will this be the test wherein we can finally say that Hyundai has officially arrived in the world of premium automobiles?

    Current Odometer: 2,654
    Best Fuel Economy: 18.3 mpg
    Worst Fuel Economy: 14.9 mpg
    Average Fuel Economy (over the life of the vehicle): 16.3 mpg

    The manufacturer provided Edmunds this vehicle for the purposes of evaluation.

    Road Test

    Wrap-Up

    Why We Bought It
    Durability
    Performance and Fuel Economy
    Retained Value
    Summing Up

    Hyundai vehicles entered the United States more than 20 years ago with an affordable alternative to the mainstream sedan. Poor build quality caused Hyundai's popularity to plummet as the affordable label deteriorated to a far less flattering image — cheap. We bring up this unflattering episode in Hyundai's history yet again because it was the best thing that could have happened, both for the Korean automaker and for the American driver.

    Heavy investments in reliability paid dividends for the Korean brand when it reemerged in 2004. Ever since, Hyundai has led the industry in emphasizing reliability results and warranty coverage. When you say "Hyundai," the consumer now responds, "100,000-mile warranty." As a result, Hyundai attained an image of value — an excellent ratio between what is expected and what is delivered.

    Hyundai has applied this thinking to each new category it has entered — mainstream sedans with the Sonata, luxury sedans with the Azera, and now premium sedans and coupes with the Genesis. With the Veracruz, we expected to apply these same standards of value to a crossover suited to the brand's luxury-for-less image. So Inside Line ordered up an all-wheel-drive 2008 Hyundai Veracruz SE and ran it through our durability gauntlet for 12 months and 22,000 miles.

    Why We Bought It
    Changes to the Veracruz SE were minimal from its introductory year in 2007 to the 2008 model. We chose the Veracruz SE for several reasons.

    Our first drive of the Veracruz drew instant comparisons to the Lexus RX 350. We found Hyundai products generally a step behind their luxury benchmarks in past tests. They could never quite reach that elite level of quality. But the Veracruz showed signs during our first drive that it might just be good enough to reach the brand's lofty objectives. Would this SUV look as fresh after 12 months as it did out of the box? We ordered one to find out.

    Hyundai products have always fared well in comparison tests. Their value package sees to that. But now that we had the chance to test the durability of the Veracruz, would material wear in the passenger cabin be an issue as it was with our long-term Hyundai Azera and Sonata? In addition, the timely additions of the Buick Enclave and Mazda CX-9 crossovers to our fleet offered the potential for a three-way SUV durability comparison live on our blogs.

    Durability
    Our initial impressions of the Veracruz's driving manners left us apprehensive about its long-term prospects with us. The engine didn't offer quite the power we hoped for, and early fuel-economy figures were unimpressive. But as we spent more time behind the wheel, our opinions slowly changed.

    Chief Road Test Editor Chris Walton voiced some initial concerns about the Veracruz's ride quality on the long-term blog pages. Walton wrote, "I'm not particularly fond of the ride. Over smooth pavement it is quiet and compliant. Presented with seams or potholes, the Hyundai gets stiff-legged and boomy. The ride remains within tolerable levels, but the steering shudders slightly and the suspension transmits sound into the cabin in a way that reminds me I'm not in a Lexus."

    Inside the cabin we found the 2008 Hyundai Veracruz and its numerous amenities a big plus: felt-lined storage bins, 100-volt auxiliary plug and powerpoint in the rear cargo area, multiple rear A/C vents and a power liftgate, just to name a few. Hyundai figured out that a lot of little pleasures add up to a better vehicle. It was right.

    When it came to quality, the Hyundai's interior durability was impressive. The black leather interior seats were virtually indestructible. They easily managed to endure every dirty child and wet dog we could drag across them. By contrast, the beige leather interiors of our long-term Sonata and Azera took a beating under similar conditions. (If we took anything from this test it was to definitely choose the dark interior color for the kind of hard use to which we subject vehicles.) Fit and finish on the Veracruz was equally commendable, handily surpassing that of our long-term Mazda CX-9, which was a surprise to us.

    Interior cargo capacity was ample, but there were times we wanted more. Our Veracruz was put to the ultimate cargo test when News Editor Kelly Toepke attempted to load it with 1,700 boxes of Girl Scout cookies (a record number in her Girl Scout region). Toepke recounted, "I needed 200 cubic feet or so of space, but none of the pickups or SUVs in our fleet were gonna do the job. What I needed was a minivan. But our long-term Kia Sedona was gone and our long-term Dodge Grand Caravan wasn't in yet. In the end, I drove the Veracruz to handle two-thirds of the load and another Brownie mom brought her Toyota Camry for the rest."

    Our only real gripe was the blue interior light scheme, a color that Jaguar and Volkswagen have made very trendy in interior design. Engineering Editor Jason Kavanagh wrote, "The backlighting looks cool, but isn't. It's said that the rods in human eyes are most sensitive to wavelengths in the bluish-green range, which tend to bleach out a person's night vision. I'm not sure how effective night vision is when the headlights are on, but I can say that the blue illumination in our Veracruz makes things tough to focus on. I'd hazard a guess that is why automakers so rarely choose blue for dashboard lighting. It's simply the wrong thing to do."

    We experienced two mechanical issues with the 2008 Hyundai Veracruz during its stay. The air-conditioning system and horn both failed.

    The A/C unit began ticking and whirring unnaturally around the 3,000-mile mark before it shut down completely. It was most noticeable when the near-silent engine was at idle. We tracked the noise as it grew progressively louder and then finally quit. Cormier Hyundai in Carson, California, performed the A/C system test, recharged the system at no cost and sent us on our way. The issue never returned.

    A few thousand miles later, the horn stopped working. We located the associated fuse and found it had burnt out. Within days our replacement fuse also failed, which confirmed we had a larger problem. Cormier completed this repair as well. Both high- and low-pitch horn assemblies were replaced under warranty. The horn has worked ever since.

    We frequented Cormier Hyundai for the majority of our service needs. Our advisor, Jim Ivison, took care of our needs in a professional and timely manner. Out of convenience, Lithia Hyundai in Fresno, California, was also used for some of our routine maintenance needs. They, too, offered satisfactory levels of service. Our average service during 22,000 miles of Veracruz ownership was $41.

    Total Body Repair Costs: None. (Yes, we can't believe it, either.)
    Total Routine Maintenance Costs (over 12 months): $123.70
    Additional Maintenance Costs: None.
    Warranty Repairs: A/C compressor recharged. Horn replaced.
    Non-Warranty Repairs: None.
    Scheduled Dealer Visits: 3
    Unscheduled Dealer Visits: None.
    Days Out of Service: 1 day wait to special order horn parts.
    Breakdowns Stranding Driver: None.

    Performance and Fuel Economy
    From its first test at 1,000 miles to its final test more than 20,000 miles later, the 2008 Hyundai Veracruz proved durable. This was reflected in a consistent track performance at both tests.

    When it came to power, there just wasn't the kind of torque we expect from the 3.8-liter Hyundai V6. Gearchange patterns were leisurely, even in manual mode, which added to our impression of leisurely performance. We recorded a 0-60-mph time from a standstill of 8.3 seconds and ran the quarter-mile in 16.6 seconds at 84.7 mph with the Veracruz. This is noticeably slower to 60 mph than its Enclave (7.9 seconds from a standstill) and CX-9 (7.4 seconds from a standstill) counterparts.

    We also expected more from the Hyundai's 260-horsepower V6 in terms of fuel economy. Our best fuel economy from a tank of regular unleaded was nearly 22 mpg following a long highway drive. This number was difficult to repeat and we rarely broke the 20-mpg barrier during the 22,000-mile test. We averaged just 16 mpg overall, which ranks behind our long-term Enclave (17.5 mpg) and CX-9 (18.2).

    Best Fuel Economy: 21.8 mpg
    Worst Fuel Economy: 11.7 mpg
    Average Fuel Economy: 16.4 mpg

    Retained Value
    Yet another head-to-head battle that found the Hyundai bringing up the rear was that of retained value. Hyundai products are an excellent value at the time of purchase but resale value is historically low. The Veracruz is no exception. Edmunds' TMV® calculator valued the SUV at 29 percent lower than its $36,870 MSRP after our 22,000-mile test. Similar mileage took much less of a toll on the resale value of the Buick Enclave, which depreciated 23 percent. At the same time, our long-term Mazda CX-9 lost 28 percent in value by the end of its test.

    True Market Value at service end: $26,121
    Depreciation: $10,749 or 29% of original MSRP
    Final Odometer Reading: 22,446

    Summing Up
    On an individual basis, the Hyundai Veracruz proved popular during its stay. Thoughtful luxury-oriented features went a long way toward winning us over. But when it came time to compare these features to competitive SUVs in our long-term fleet, the Hyundai lost some momentum. Smaller cabin dimensions, a third-row seat sized only for children and comparably poor fuel economy were limiting factors for this family road-tripper.

    Hyundai products have broken from the poor quality stigma of their early years and become a true value leader in the industry. Our long-term 2008 Hyundai Veracruz SE is a perfect example of this. Like every Hyundai, it's affordable and boasts an incredible warranty. But in the resale market, the brand continues to struggle for respect. Because of the depreciation factor, Hyundai products should be bought and driven until they won't drive anymore. Those in search of a car to drive a few years and then sell off should look elsewhere.

    The manufacturer provided Edmunds this vehicle for the purposes of evaluation.

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