Dishonest Communication and Unequal Treatment of Customers
I am extremely disappointed with Rusty Wallace Hyundai in Knoxville. My 2025 Hyundai Palisade, which cost over $50,000, began losing paint across multiple areas on the front when it was just over a year old.
During my August 7, 2026, service appointment, service advisor Brittany inspected the damage and personally took multiple photographs. I was told the concern would be submitted to Hyundai and that I would receive a phone call with an update. No one ever contacted me.
When I followed up on October 7, Brittany initially said she could not find me in her system. Instead of first verifying my information, she began discussing no paint claims have been taken for four months. She eventually mentioned a white vehicle, and I told her ours was black and I had no idea what she was referring to. After I provided my husband's information, she confirmed our information was in the system, reviewed our records, and told me our claim had been submitted and denied because rock chips were not covered.
When I asked for the denial date and claim number, she switched to another system she said she could not access and directed me to Daniel, the service manager. I contacted Hyundai Customer Care myself and was told there was no paint claim on file.
Daniel then confirmed he had never submitted a warranty claim for our vehicle because he personally decided the damage was caused by rock chips. He suggested Brittany may have confused our claim with another customer's. However, Brittany had my husband's and my profile pulled up when she told me our claim had been denied. She was not looking at another customer's account. Daniel could not explain why we were given this information or why Brittany could not provide a denial date or claim number.
Daniel also claimed the paperwork from our August appointment stated the claim was denied. However, we were verbally told the concern would be submitted and that someone would call us with an update. When I asked why we were promised a phone call if the claim had already been denied, he had no explanation beyond repeating that it was on the paperwork. I cannot locate the paperwork he referenced, but my concern is that what we were told in person does not match his explanation.
The most disappointing part was Daniel's explanation of the dealership's $500 goodwill assistance. He described helping other customers with similar paint concerns, including a repeat customer whose claim he submitted that same day. He also mentioned assisting a customer who had purchased seven vehicles from Rusty Wallace Hyundai.
I directly asked Daniel whether he refused to submit our claim because we purchased our vehicle elsewhere. He confirmed that was the reason as he alleged it was from rock chips. He also stated that he had the right to decide how he used the dealership's goodwill assistance, even though the other customers he discussed also had alleged rock-chip damage. My husband is a military veteran, and we purchased our vehicle out of state because he was on military orders at the time. Where we purchased the vehicle should not determine whether a potential warranty concern is submitted for evaluation.
I understand that warranty coverage is not guaranteed. My issue is that Daniel decided the outcome without submitting a claim, while Brittany told me it had been submitted and denied.
There is also a discrepancy with the photographs. Brittany personally photographed the damage during our August visit, but the photos provided to me were from the vehicle-scanning machine when we arrived. They did not include the photographs she took during her inspection and did not show the entire front or all areas where paint was missing. I have requested that Hyundai Customer Care obtain the original photographs, complete service records, and any available surveillance footage so this can be investigated. I am not claiming the photographs were intentionally withheld; I want an explanation for why the photos taken during the inspection were not provided.
This experience has seriously damaged my trust in this dealership. I spent over $50,000 on a Hyundai and expected an honest, straightforward process--not conflicting explanations and a refusal to submit my concern because I purchased elsewhere.
I am now escalating this directly to Hyundai Motor America to request the evaluation that should have been pursued from the beginning.
If you purchase a vehicle elsewhere and need service or warranty assistance from Rusty Wallace Hyundai, keep detailed records and verify directly with Hyundai that any claim the dealership says it submitted actually exists.
Hyundai Case Management #: 43360656 read more
