Lionel Trains: Value, History and What Collectors Should Know
Arguably the best-known name in the model railroad industry, iconic model train company Lionel, LLC has manufactured model trains and model railroading accessories since 1900. Lionel trains specialize in O gauge model railroad products, which include realistic models of engines, freight cars, passenger cars, cabooses, buildings, and other Lionel train parts.
The Lionel Manufacturing Company was founded by Joshua Lionel Cowen in 1900 in New York City. Cowen’s first electric train, The Electric Express, debuted in 1901 and was initially designed as a display for toy stores. The train caught on and soon Lionel was manufacturing model electric trains for consumers. By 1906, Lionel was well established as an electric model railroad manufacturer.
Lionel Trains’ Value and Collecting Trends
Lionel trains’ value varies depending on design, materials, and era. At auction, Lionel train sets, pieces, and accessories can sell for a few hundred dollars or for a few thousand dollars, depending on the rarity and condition of the piece.
Lionel collectors tend to have a lifelong passion for model railroading. While collectors do note some decline in the popularity of the hobby (due to the rise in electronics and video games and the general cost of model railroading), collecting remains active online and new interest in model trains has emerged through model railroad Christmas products that draw on the power of nostalgia.
“Current Lionel train market trends show that collectors of pre-war trains still exist, but the numbers are getting smaller as the new generations are losing interest. At this point, more high-grade items are coming available to the market to simply supply and demand metrics,” says Wylie Stivers, owner at Toys, Trains and Other Old Stuff.
“Buyers truly want all-original trains that have never been tampered with. Once the originality has been compromised, prices take a steep turn downward from their original counterparts. Pricing is always subjective among buyers and sellers. Today’s train market is increasingly becoming a buyer’s market due to that supply and demand.”
The look, style, and quality of Lionel model trains are linked to different phases of the Lionel Corporation and the business conditions that the company experienced, so collectors should pay particular attention to the date the Lionel model trains were manufactured.
Below, explore are prime examples of trains and accessories sold from the Invaluable price archive, organized into four different eras of Lionel production.
Pre-War Lionel Trains
Lionel developed and perfected its model designs and layouts during the Pre-War Era (1901–1942). The first Lionel electric trains were powered by wet-cell batteries, which were, of course, dangerous. For safety reasons, the batteries were soon replaced by a 110 volt transformer. A three-rail “standard gauge” track, designed to minimize short circuits, was developed to go along with the transformer. Lionel’s own marketing message, which proclaimed that Lionel track was the “standard of the world,” later evolved into the Lionel standard gauge train size we know today. Lionel developed many different model engines and rail cars, as well as accessories, to allow consumers to set up their trains into life-like layouts.
Lionel O gauge trains were introduced in 1915, the size that eventually became Lionel’s most popular product. Lionel model trains experienced wide popularity throughout the 1920s, but business declined sharply during the Great Depression. Because people could not afford expensive model trains, the smaller Lionel O gauge trains became more popular and Lionel Standard gauge was discontinued in 1939.
Pre-War Lionel Trains: Value
Pre-war Lionel trains can sell anywhere from twenty dollars to several thousand dollars, depending on the rarity of the piece and its condition (among other factors). Recent auction results indicate that pre-war Lionel trains generally sell for a few hundred dollars per lot, with exceptional examples selling for a few thousand dollars.
Image 1: Lionel Standard Gauge Pre-War No. 378W Train Set
Morphy Auctions, Denver, PA (September 2015)
Estimate: $15,000 – $20,000
Price Realized: $12,810
Image 2: Lionel prewar standard gauge gray 400E steam locomotive with tender
Stout Auctions Toy and Train Specialists, Williamsport, IN (April 2016)
Estimate: $10 – $1,400
Price Realized: $1,050
Image 3: Lionel Pre-war Standard Gauge No. 10E Passenger Train Set
Morphy Auctions, Denver, PA (September 2017)
Estimate: $1,200 – $1,800
Price Realized: $799
Image 4: Lionel Pre-War Standard Gauge No. 9E Electric Engine
Morphy Auctions, Denver, PA (October 2018)
Estimate: $300 – $500
Price Realized: $425
Image 5: Lot of 10: Lionel Pre War Accessories
Estimate: $200 – $300
Price Realized: $366
Image 6: Lionel Model Train #42 Locomotive, Pre-war, Standard gauge
Leonard Auction, Addison, IL (February 2019)
Estimate: $200 – $250
Price Realized: $325
Post-War Lionel Trains
During World War II, toy manufacturers placed their production on hold so they could dedicate their resources to helping the war effort. Lionel trains were no exception, and the company ceased model railroad production to manufacture compasses for the U.S. Army. Lionel model trains resumed production after the war ended in 1945, and Lionel O gauge model railroad sets were the company’s most in-demand product. These sets in particular would become responsible for aligning Lionel’s image with the iconic model train under the Christmas tree — for years to come.
In the Post-War Era (1945-1969), Lionel trains introduced magnetic knuckle couplers and remote uncoupling. In 1948 they also developed diesel engines, which were modeled after real-life trains. Lionel focused on making their model railroads look more realistic. Through this effort, a large assortment of engines, cars, and accessories in a variety of colors and designs were made available to consumers.
The popularity of Lionel train sets peaked in the mid-1950s, and business declined as television became popular. Joshua Lionel Cowen and his son, Lawrence Cowen, sold their interest in the company in 1959 to their relative, Roy Cohen. The company fell into decline after the Cowens left, and the organization filed for bankruptcy in 1967. Rights to Lionel electric trains were sold to General Mills, an American manufacturer of consumer goods, in 1969.
“The Post-War era is still hot, especially for high-grade items. Variations are always of high interest but those numbers are dropping off gradually as more collectors have filled certain voids in their collections,” says Stivers.
Image 1: Rare Black Lionel 2360 Vagell GG1, Post-War
Stout Auctions Toy and Train Specialists, Williamsport, IN (April 2016)
Estimate: $10 – $10,000
Price Realized: $15,000
Image 2: 1950 Lionel No. 2169 W.S. Freight Set
Morphy Auctions, Denver, PA (October 2018)
Estimate: $1,500 – $2,500
Price Realized: $1,600
Image 3: Post War Lionel No. 1626W Santa Fe Boxed Set
Morphy Auctions, Denver, PA (June 2016)
Estimate: $400 – $600
Price Realized: $793
Image 4: Pre-War Lionel O Gauge 251 Passenger Train Set
Morphy Auctions, Denver, PA (October 2016)
Estimate: $600 – $900
Price Realized: $550
Image 5: Lionel Post War Celebration Series 38096 #773 Hudson Loco & Tender
Stout Auctions Toy and Train Specialists, West Middlesex, PA (July 2018)
Estimate: $200 – $300
Price Realized: $300
Image 6: Lionel Joshua Cowen Set 8210 9429 9430 9431 9432 9433 9434 6421 Boxed
Stout Auctions Toy and Train Specialists, West Middlesex, PA (July 2017)
Estimate: $10 – $500
Price Realized: $250
General Mills & Richard Kughn Lionel Trains
Collectors often refer to the era from 1969 to 1995 as the “MPC Era” or the “Fundimensions Era.” After General Mills acquired the rights to Lionel model trains, they incorporated the business into their toy subsidiary, Model Products Corporation, or MPC. This subsidiary was renamed “Fundimensions” in 1973. Fundimensions built up the Lionel product line to post-war levels during the 1970s, but in order to cut costs they used cheap manufacturing techniques, including plastic trucks and couplers. Lionel model trains from this era are considered less desirable, but a few items from this era are popular, especially the Mickey Mouse Express 15-piece model railroad set from 1977.
In the mid-1980s General Mills attempted to move production of the Lionel line to Mexico. This move ultimately failed, and production was moved back to the United States. In 1986, shortly after the failed move, General Mills sold rights to the Lionel brand to Richard Kughn, a Detroit real estate developer and model railroading enthusiast. Kughn established Lionel Trains Inc. and began reinstating quality production, including working couplers and solid steel wheels.
Kughn introduced RailSounds in 1989, then worked with musician and fellow model railroad enthusiast Neil Young to produce RailSounds II in 1992. Kughn also introduced Train Master Control, Lionel’s first model railroad console that offered centralized control of all functions, in 1994. Kughn sold Lionel to the Martin Davis Investment Group in 1995, but his collection of Lionel trains and memorabilia, which was sold by Pace & Hong Auctions as a six-part series in 2017, lives on as one of the most comprehensive compilations of Lionel trains.
Image 1: Lionel Disney Mickey Mouse Express Set in Original Box
Stout Auctions Toy and Train Specialists, Williamsport, IN (June 2017)
Estimate: $400 – $700
Price Realized: $925
Image 2: Eight Lionel MPC O gauge TCA convention cars in original boxes
Toys, Trains and Other Old Stuff
Estimate: $5 – $150
Price Realized: $400
Image 3: Lionel 350E MPC Hiawatha Set
Stout Auctions Toy and Train Specialists, Williamsport, IN (July 2018)
Estimate: $20- $400
Price Realized: $300
Image 4: 13 Lionel MPC Freight Cars
Weiss Auctions, Lynbrook, NY (December 2018)
Estimate: $80 – $160
Price Realized: $100
Lionel LLC Trains
After Lionel was sold, the company was reorganized and renamed Lionel LLC. Production was moved to China and Korea, but the company focused on continuing to improve the quality of Lionel products. As technology advanced, Lionel trains continued to incorporate new and improved technologies, including its current remote control system, LionChief. Lionel also introduced a series of reproductions of its historic Standard and O gauge trains from the Pre-War and Post-War Eras to commemorate Lionel’s 100th anniversary in 2000. In 2004, Lionel collaborated with Warner Bros. Studios to produce “The Polar Express” model train set, based on the movie. This set became Lionel’s all-time best seller.
In recent years, based on feedback from collectors, Lionel has moved production of some limited edition lines back to the United States. Its corporate headquarters are now located in Concord, North Carolina.
Image 1: Contemporary Lionel Brass No.7 Steam Type Engine
Morphy Auctions, Denver, PA (December 2013)
Estimate: $300 – $600
Price Realized: $1,020
Image 2: Lionel 28062 100th anniversary gold 700E Hudson
Stout Auctions Toy and Train Specialists Williamsport, IN (August 2017)
Estimate: $650 – $850
Price Realized: $725
Image 3: Lionel 30220 Polar Express streamlined set with 35290 add on cars
Stout Auctions Toy and Train Specialists, Williamsport, IN (August 2018)
Estimate: $150 – $275
Price Realized: $275
Image 4: Lionel US LionChief Plus Mikado Steam Locomotive 6-83607
Stout Auctions Toy and Train Specialists, Williamsport, IN (July 2018)
Estimate: $200 – $300
Price Realized: $200
Looking for more? Explore Lionel trains on Invaluable now historical records of Lionel trains sold at auction from the archives.
