What is the first proper step to repossessing a motor vehicle?

The first proper step to repossessing a motor vehicle is creating a security interest by effecting a lien. When a lender provides financing for a vehicle purchase, they typically secure their interest in the vehicle by placing a lien on it. This legal claim ensures that the lender has the right to repossess the vehicle if the borrower defaults on the loan.

Establishing this lien is crucial because it provides the necessary legal groundwork for the repossession process. Without a valid lien, repossessing the vehicle could lead to legal complications or disputes over ownership and rights.

The other options are more reactive and don’t establish the legal right to repossess a vehicle. Making a payment plan would generally occur after default, while notifying the customer or preparing an advertisement does not create any underlying legal authority to reclaim ownership of the vehicle. Thus, effecting a lien correctly sets the stage for any subsequent repossession actions.