<PAGE>

                                                                   EXHIBIT 10.27

                                                                  EXECUTION COPY

                    INDEMNITY, SUBROGATION and CONTRIBUTION AGREEMENT dated as
               of October 17, 1996, as amended and restated as of August 7,
               1997, among RYDER TRS, INC., a Delaware corporation (the
               "Borrower"), each Subsidiary of the Borrower listed on Schedule I
               hereto (the "Guarantors") and CITICORP USA, INC., a Delaware
               corporation ("Citicorp"), as collateral agent (the "Collateral
               Agent") for the Secured Parties (as defined in the Credit
               Agreement referred to below).


     Reference is made to (a) the Credit Agreement dated as of October 17, 1996,
as amended and restated as of August 7, 1997 (as further amended, supplemented
or otherwise modified from time to time, the "Credit Agreement"), among the
Borrower, the lenders from time to time party thereto (the "Lenders"), The Chase
Manhattan Bank, as documentation agent, and Citicorp, as administrative agent
for the Lenders, and as Collateral Agent, and (b) the Guarantee Agreement dated
as of October 17, 1996, as amended and restated as of August 7, 1997 (the
"Guarantee Agreement"), among the Guarantors identified therein and the
Collateral Agent.  Capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Credit Agreement.

     The Lenders have agreed to make Loans to the Borrower, pursuant to, and
upon the terms and subject to the conditions specified in, the Credit Agreement.
The Guarantors have guaranteed such Loans and the other Obligations (as defined
in the Guarantee Agreement) of the Borrower under the Credit Agreement pursuant
to the Guarantee Agreement; certain Guarantors have granted Liens on and
security interests in certain of their assets to secure such guarantees.  The
obligations of the Lenders to make Loans are conditioned on, among other things,
the execution and delivery by the Borrower and the Guarantors of an agreement in
the form hereof.

     Accordingly, the Borrower, each Guarantor and the Collateral Agent agree as
follows:

     SECTION 1.  Indemnity and Subrogation.  In addition to all such rights of
indemnity and subrogation as the Guarantors may have under applicable law (but
subject to Section 3), the Borrower agrees that (a) in the event a payment shall
be made by any Guarantor under the Guarantee Agree  ment, the Borrower shall
indemnify such Guarantor for the full amount of such payment and such Guarantor
shall be subrogated to the rights of the person to whom such payment shall have
been made to the extent of such payment and (b) in the event any assets of any
Guarantor shall be sold pursuant to any Security Document to satisfy a claim of
any Secured Party, the Borrower shall indemnify such Guarantor in an amount
equal to the greater of the book value or the fair market value of the assets so
sold.

     SECTION 2.  Contribution and Subrogation.  Each Guarantor (a "Contributing
Guarantor") agrees (subject to Section 3) that, in the event a payment shall be
made by any other Guarantor under the Guarantee Agreement or assets of any other
Guarantor shall be sold pursuant to any Security Document to satisfy a claim of
any Secured Party and such other Guarantor (the "Claiming Guarantor") shall not
have been fully indemnified by the Borrower as provided in Section 1, the
Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal
to the amount of such payment or the greater of the book value or the fair
market value of such assets, as the case may be, in each case multiplied by a
fraction of which the numerator shall be the Net Worth (as defined below) of the
Contributing Guarantor on the date hereof and the denominator shall be the
aggregate Net Worth of all the Guarantors on the date hereof (or, in the case of
any Guarantor becoming a party hereto pursuant to Section 12, the date of the
Supplement hereto executed and delivered by such Guarantor).  The term  "Net
Worth" shall mean, with respect to any person, the fair value of the assets of
such person over the fair value of the liabilities of such person (including
contingent liabilities).  Any Contributing Guarantor making any payment to a
Claiming Guarantor pursuant to this Section 2 shall be subrogated to the rights
of such Claiming Guarantor under Section 1 to the extent of such payment.
<PAGE>

                                                                               2

     Anything contained in this Agreement to the contrary notwithstanding, the
obligations of each Contributing Guarantor hereunder shall be limited to a
maximum aggregate amount equal to the greatest amount that would not render such
Contributing Guarantor's obligations hereunder subject to avoidance as a
fraudulent transfer or conveyance under Section 548 of Title 11 of the United
States Code or any provisions of applicable state law (collectively, the
"Fraudulent Transfer Laws"), in each case after giving effect to all other
liabilities of such Contributing Guarantor, contingent or otherwise, that are
relevant under the Fraudulent Transfer Laws (specifically excluding, however,
any liabilities of such Contributing Guarantor (a) in respect of intercompany
indebtedness to the Borrower or Affiliates of the Borrower to the extent that
such indebtedness would be discharged in an amount equal to the amount paid by
such Contributing Guarantor hereunder and (b) under any Guarantee of senior
unsecured indebtedness or Indebtedness subordinated in right of payment to the
Obligations which Guarantee contains a limitation as to maximum amount similar
to that set forth in this paragraph, pursuant to which the liability of such
Contributing Guarantor hereunder is included in the liabilities taken into
account in determining such maximum amount) and after giving effect as assets to
the value (as determined under the applicable provisions of the Fraudulent
Transfer Laws) of any rights to subrogation, contribution, reimbursement,
indemnity or similar rights of such Contributing Guarantor pursuant to (i)
applicable law or (ii) any agreement providing for an equitable allocation among
such Contributing Guarantor and other Affiliates of the Borrower of obligations
arising under Guarantees by such parties (including this Agreement).

     SECTION 3.  Subordination.  Notwithstanding any provision of this Agreement
to the contrary, all rights of the Guarantors under Sections 1 and 2 and all
other rights of indemnity, contribution or subrogation under applicable law or
otherwise shall be fully subordinated to the indefeasible payment in full in
cash of the Obligations.  No failure on the part of the Borrower or any
Guarantor to make the payments required by Sections 1 and 2 (or any other
payments required under applicable law or other  wise) shall in any respect
limit the obligations and liabilities of any Guarantor with respect to its
obligations hereunder, and each Guarantor shall remain liable for the full
amount of the obligations of such Guarantor hereunder.

     SECTION 4.  Termination.  This Agreement shall survive and be in full force
and effect so long as any Obligation is outstanding and has not been
indefeasibly paid in full in cash, or any of the Commit  ments under the Credit
Agreement have not been terminated, and shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
any Obligation is rescinded or must otherwise be restored by any Secured Party
or any Guarantor upon the bankruptcy or reorganization of the Borrower, any
Guarantor or otherwise.

     SECTION 5.  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 6.  No Waiver; Amendment.  (a)  No failure on the part of the
Collateral Agent or any Guarantor to exercise, and no delay in exercising, any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy by the
Collateral Agent or any Guarantor preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.  All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by law.  None of
the Collateral Agent and the Guarantors shall be deemed to have waived any
rights hereunder unless such waiver shall be in writing and signed by such
parties.

     (b)  Neither this Agreement nor any provision hereof may be waived, amended
or modified except pursuant to a written agreement entered into between the
Borrower, the Guarantors and the Collateral Agent, with the prior written
consent of the Required Lenders (except as otherwise provided in the Credit
Agreement).

     SECTION 7.  Notices.  All communications and notices hereunder shall be in
writing and given as provided in the Guarantee Agreement and addressed as
specified therein.
<PAGE>

                                                                               3

     SECTION 8.  Binding Agreement; Assignments.  Whenever in this Agreement any
of the parties hereto is referred to, such reference shall be deemed to include
the successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of the parties that are contained in this Agreement
shall bind and inure to the benefit of their respective successors and assigns.
Neither the Bor  rower nor any Guarantor may assign or transfer any of its
rights or obligations hereunder (and any such attempted assignment or transfer
shall be void) without the prior written consent of the Required Lenders.
Notwithstanding the foregoing, at the time any Guarantor is released from its
obligations under the Guarantee Agreement in accordance with such Guarantee
Agreement and the Credit Agreement, such Guarantor will cease to have any rights
or obligations under this Agreement.

     SECTION 9.  Survival of Agreement; Severability.  (a)  All covenants and
agreements made in writing by the Borrower and each Guarantor herein and in the
certificates or other instruments prepared or delivered in connection with this
Agreement or the other Loan Documents shall be considered to have been relied
upon by the Collateral Agent, the other Secured Parties and each Guarantor and
shall survive the making by the Lenders of the Loans, and shall continue in full
force and effect as long as the principal of or any accrued interest on any
Loans or any other fee or amount payable under the Credit Agreement or this
Agreement or under any of the other Loan Documents is outstanding and unpaid and
as long as the Commitments have not been terminated.

     (b)  In case any one or more of the provisions contained in this Agreement
should be held invalid, illegal or unenforceable in any respect, no party hereto
shall be required to comply with such provision for so long as such provision is
held to be invalid, illegal or unenforceable, but the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.  The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

     SECTION 10.  Counterparts.  This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  This Agreement shall be effective with respect to any
Guarantor when a counterpart bearing the signature of such Guarantor shall have
been delivered to the Collateral Agent.  Delivery of an executed signature page
to this Agreement by facsimile transmission shall be as effective as delivery of
a manually signed counterpart of this Agreement.

     SECTION 11.  Rules of Interpretation.  The rules of interpretation
specified in Section 1.02 of the Credit Agreement shall be applicable to this
Agreement.

     SECTION 12.  Additional Guarantors.  Pursuant to Section 5.16 of the Credit
Agreement, each Domestic Subsidiary (other than Finco or Leasco) and, to the
extent that no adverse tax consequences to the Borrower or any Subsidiary would
result, Foreign Subsidiary, that was not in existence or not such a Subsidiary
on the date of the Credit Agreement is required to enter into the Guarantee
Agreement and this Agreement as a Guarantor upon becoming such a Subsidiary.
Upon execution and delivery, after the date hereof, by the Collateral Agent or
any such Subsidiary of an instrument in the form of Annex 1 hereto, such
Subsidiary shall become a Guarantor hereunder with the same force and effect as
if originally named as a Guarantor hereunder.  The execution and delivery of any
instrument adding an additional Guarantor as a party to this Agreement shall not
require the consent of any Guarantor hereunder.  The rights and obligations of
each Guarantor hereunder shall remain in full force and effect notwithstanding
the addition of any new Guarantor as a party to this Agreement.
<PAGE>

                                                                               4

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the date first appearing above.


                              RYDER TRS, INC.,

                              by  /s/ STEVEN R. DAVISON
                                 -----------------------------------------------
                                 Name: Steven R. Davison
                                 Title: Vice President and Treasurer


                              EACH OF THE SUBSIDIARIES LISTED ON SCHEDULE I
                              HERETO, as a Guarantor,

                              by  /s/ THOMAS W. ARNST
                                 -----------------------------------------------
                                 Name: Thomas W. Arnst
                                 Title: Authorized Officer


                              CITICORP USA, INC., as Collateral Agent,

                              by  /s/ SHAPLEIGH SMITH
                                 -----------------------------------------------
                                 Name: Shapleigh Smith
                                 Title: Vice President
<PAGE>

                                                               Schedule I to the
                                                          Indemnity, Subrogation
                                                      and Contribution Agreement

                                   GUARANTORS


Name                                     Address for all Guarantors
----                                     --------------------------

Ryder Truck Rental-OneWay, Inc.          1560 Broadway
Ryder Relocation Services, Inc.          Suite 1800
The Move Shop, Inc.                      Denver, CO 80202

Ryder Move Management, Inc.              8669 N.W. 36th Street
                                         Miami, FL 33166
<PAGE>

                                                                  Annex 1 to the
                                                      Indemnity, Subrogation and
                                                          Contribution Agreement


                    SUPPLEMENT NO. [  ] dated as of [     ], to the Indemnity,
               Subrogation and Contribution Agreement dated as of October 17,
               1996, as amended and restated as of August 7, 1997 (as the same
               may be amended, supplemented or otherwise modified from time to
               time, the "Indemnity, Subrogation and Contribution Agreement"),
               among RYDER TRS, INC., a Delaware corporation (the "Borrower"),
               each Subsidiary of the Borrower listed on Schedule I thereto (the
               "Guarantors") and CITICORP USA, INC., a Delaware corporation
               ("Citicorp"), as collateral agent (the "Collateral Agent") for
               the Secured Parties (as defined in the Credit Agreement referred
               to below).


     A.  Reference is made to (a) the Credit Agreement dated as of October 17,
1996, as amended and restated as of August 7, 1997 (as further amended,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
among the Borrower, the lenders from time to time party thereto (the "Lenders"),
The Chase Manhattan Bank, as documentation agent, and Citicorp, as
administrative agent for the Lenders, and as Collateral Agent and (b) the
Guarantee Agreement dated as of October 17, 1996, as amended and restated as of
August 7, 1997  (the "Guarantee Agreement"), among the Guarantors identified
therein and the Collateral Agent.

     B.  Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Indemnity, Subrogation and
Contribution Agreement and the Credit Agreement.

     C.  The Borrower and the Guarantors have entered into the Indemnity,
Subrogation and Contribution Agreement in order to induce the Lenders to make
Loans.  Pursuant to Section 5.16 of the Credit Agreement, each Domestic
Subsidiary (other than Finco or Leasco) and, to the extent that no adverse tax
consequences to the Borrower or any Subsidiary would result, Foreign Subsidiary,
that was not in existence or not such a Subsidiary on the date of the Credit
Agreement is required to enter into the Guarantee Agreement and the Indemnity,
Subrogation and Contribution Agreement as a Guarantor upon becoming such a
Subsidiary.  Section 12 of the Indemnity, Subrogation and Contribution Agreement
provides that any such Subsidiary may become a Guarantor under the Indemnity,
Subrogation and Contribution Agreement by execution and delivery of an
instrument in the form of this Supplement.  The undersigned Subsidiary (the "New
Guarantor") is executing this Supplement in accordance with such requirements of
the Credit Agreement to become a Guarantor under the Indemnity, Subrogation and
Contribution Agreement in order to induce the Lenders to make additional Loans
and as consideration for Loans previously made.

     Accordingly, the Collateral Agent and the New Guarantor agree as follows:

     SECTION 1.  In accordance with Section 12 of the Indemnity, Subrogation and
Contribution Agreement, the New Guarantor by its signature below becomes a
Guarantor under the Indemnity, Subrogation and Contribution Agreement with the
same force and effect as if originally named therein as a Guarantor and the New
Guarantor hereby agrees to all the terms and provisions of the Indemnity,
Subrogation and Contribution Agreement applicable to it as a Guarantor
thereunder.  Each reference to a "Guarantor" in the Indemnity, Subrogation and
Contribution Agreement shall be deemed to include the New Guarantor.  The
Indemnity, Subrogation and Contribution Agreement is hereby incorporated herein
by reference.

     SECTION 2.  The New Guarantor represents and warrants to the Collateral
Agent and the other Secured Parties that this Supplement has been duly
authorized, executed and delivered by it and con  stitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms.

     SECTION 3.  This Supplement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  This Supplement shall become effective when the
<PAGE>

                                                                               2

Collateral Agent shall have received counterparts of this Supplement that, when
taken together, bear the signatures of the New Guarantor and the Collateral
Agent. Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Supplement.

     SECTION 4.  Except as expressly supplemented hereby, the Indemnity,
Subrogation and Contribution Agreement shall remain in full force and effect.

     SECTION 5.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 6.  In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect,
neither party hereto shall be required to comply with such provision for so long
as such provision is held to be invalid, illegal or unenforceable, but the
validity, legality and enforceability of the remaining provisions contained
herein and in the Indemnity, Subrogation and Contribution Agreement shall not in
any way be affected or impaired.  The parties hereto shall endeavor in good-
faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

     SECTION 7.  All communications and notices hereunder shall be in writing
and given as provided in Section 7 of the Indemnity, Subrogation and
Contribution Agreement.  All communications and notices hereunder to the New
Guarantor shall be given to it at the address set forth under its signature.
<PAGE>

                                                                               3

     SECTION 8.  The New Guarantor agrees to reimburse the Collateral Agent for
its reasonable out-of-pocket expenses in connection with this Supplement,
including the reasonable fees, other charges and disbursements of counsel for
the Collateral Agent.


     IN WITNESS WHEREOF, the New Guarantor and the Collateral Agent have duly
executed this Supplement to the Indemnity, Subrogation and Contribution
Agreement as of the day and year first above written.

                              [Name Of New Guarantor],

                                 by
                                    -----------------------------------
                                    Name:
                                    Title:
                                    Address:
                                            ---------------------------
                                            ---------------------------
                                            ---------------------------



                              CITICORP USA, INC., as Collateral  Agent,

                                 by
                                    -----------------------------------
                                    Name:
                                    Title: