I've gotten good results, without spending a great deal of money, by making a compromise between genuine photographic gear and cheaper stuff. You can go to a homeowner's store (e.g., Lowe's) and buy three "clamp lights," which are basic light sockets with steel reflectors and clamps that can be mounted on virtually anything (e.g., a step ladder). While you're there, pick up a package of white cheesecloth, which is sold in the paint department. Any decent camera store can sell you some blue "photoflood" bulbs, which will screw into the sockets of the clamp lights. The total outlay, even with the bulbs (which, around here at least, cost about $7.00 apiece), will be well under fifty dollars.
After screwing the bulbs into the sockets, wrap the fronts of the reflectors with two layers of the cheesecloth, held with masking tape. That has the effect of diffusing the light and softening the shadows.
There are two problems with this system. One - the bulbs have a life expectancy of about three hours. Two - they get VERY hot, quick. You're actually not supposed to use them in anything but ceramic sockets. They're quite capable of melting, or even setting fire to, the plastic sockets in the clamp lights. (I speak from experience.) The solution is to turn them off and let them cool off every few minutes.
If you get blue photofloods, though, you can use daylight-synchronized film with no filter. (I particularly like Fuji Reala, ISO 100.) With this setup I've taken quite a few ship model pictures that have gotten published in magazines.
One other thought - a key element in model photography is the background. Photography shops and mail order dealers (e.g., B&H and Adorama) sell big rolls of really nice paper in lots of colors. Another good source, though (I thank my wife, who's a public school teacher, for this one) is a school supply store. Such places sell "bulletin board paper" in big, wide rolls, or sometimes by the yard. The one near my house has a shade of blue that I like; it costs 79 cents per yard.
Maybe you already knew all this; if so, I apologize for insulting your intelligence. But maybe some of it will help a little.