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N scale is a ratio expressing the relationship of the model to it's actual size counterpart. N-Scale is expressed as 1:160 proportion. In other words, if you could take an N-Scale locomotive and enlarge it 160 times, you would have a full size locomotive. It's helpful to understand the difference between scale trains and toy trains, such as LIONEL. Toy trains do not have an exact scale. They do sometimes closely resemble full size trains but most are not produced to exacting proportions such as N-Scale or HO-Scale.
N Scale and its origin: N-Scale was invented in Germany by the firm of ARNOLD-RAPIDO. This firm still exists today although the company has undergone several reorganizations and the name was shortened to ARNOLD. While no sources seem to agree on the exact year N-Scale was conceived, they all agree that the time frame was the early 1960's. The letter "N" actually stands for the German word "Neun" (translation: Nine) meaning there are nine millimeters between the rails of N-Scale track. In the beginning, it was referred to as N-Gauge and the models were very toy-like. Today, most serious hobbyists refer to it as N-Scale recognizing the fact it has evolved into an actual scale. This means that every effort is made to make sure that the models conform to exact scale prototype proportions.
N Scale Advantages: The are many but perhaps the largest advantage actually is the small size. In this day and age, it can be difficult to devote a large area of living space to a model railroad. With N-Scale, you can a have a very large railroad in a very small space. If you live in an apartment and think you can't have a model railroad, you definitely need to give N-Scale a look. In countries like Japan, as well as many countries in Europe where living space is at a premium, N-Scale has actually become the preferred scale surpassing even the larger HO-Scale for popularity. For those that do have a large space, N-Scale offers another advantage since it will allow you to run prototypical length trains of 100 cars or more! You can create layouts where the scenery dominates the railroad just like in real life.
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