The term of a operating lease
The term of an operating lease is generally shorter than the useful economic life of the asset that is financed. The lease incorporates a residual value at the end of the lease term. The residual value is the amount that the lessor generally needs to realise (either in terms of additional rents or sale proceeds) in order to made financially whole.
Ownership of the asset
The legal and beneficial (“economic”) ownership of the asset remain with ABN AMRO Lease (the lessor). The lessee bears no residual value risk and does not have the right to purchase the asset. In certain circumstances the lessee may agree a sales agency arrangement with the lessor.