Having done some weathering in my H0 finescale modelling days including some competition models...
First, one has to think about the aspects of weathering, and really there are four (well, maybe three if you consider paint wear/breakdown one and the same)
Dirt.
Deterioration of paint (bleaching)
Deterioration of paint (worn away)
Corrosion (rust, rot).
The first thing to think about is the order that these things occur, even the newest items get some dirt on them.
You have dirt that comes from locos (soot from steamers, some from diesels) road/track grime (a thinned brownish-black green acrylic paint works wonders, I used to airbrush this at wheel/bogie level with a slight aim up) and some dirt on the ends kicked up (color of the ballast and some of the grime from the wheels).
You also get some washing of the dirt due to rain, some LIGHT and I mean LIGHT washes of indian ink and alcohol (depending on the paint) can be good for this.
Second, the paint bleaches and gets chalky due to rain and sun exposure. Reds turn pink, browns lighten up, blues will get lighter as well, yellows turn almost white. Just look around in the 1:1 world and see. Add white, but also remember this does not occur uniformly, up under an eve or door will be darker than a side panel with more exposure.
...and after a while can wear away to the primer and base material (wood/steel/etc.).
My trick for this was a base primer coat (depending on the model) and then a THIN cover of the final color over the whole model, again, light and heavy depending on exposure and angle.
When this occurs, so does rust/rot.
Rust will also occur where dents/scratches/wear occurs. Dents or scrapes in a metal panel, they will be rusty. Door hardware? Metal color with a hint of rust. Drybrush of rust and silver colors can work wonders.
Rot... Follow the steps above, but when the water collects on wood and the paint and primer are gone, then the wood goes silver-grey (grey the wood with india ink) then starts to rot in areas where it accumulates to overall over a longer period of time.
Structural rust will do the same on metal items, and in both cases, depending on leaks and construction methods, can work from inside out! There you start carving...
Now, if you are adding lettering, another tip. A LIGHT wash or LIGHT overspray of the base color (eg, oxide red car with white lettering, overwash/spray with oxide red) over the transfers/decals. It makes the lettering look like it has been there for a while. Any new chalk marks or what not should NOT be weathered this way however.
The other secret to weathering is a LITTLE goes a LONG way. Most modellers tend to overdo it.
Note, apply this to rolling stock and diesels as well, heavy weathering steam locos is a pet peeve of mine, as there are many model steam locos that are much dirtier and scruffy than any of there 1:1 brothers were in operational condition.
When these locos were in daily operation when new or rebuilt, they were often wiped down nightly. Just this weekend I came across a photo of a GVT loco in a book and you could see that the shop took pride to wipe the loco down in a set pattern that really showed up in a black-and-white photograph!
A (late) friend that was a designer for a large brass loco importer in the US had a theory that many modellers took the idea of how a steam loco looked from color photos of them in their last days of service, when any maintenance was just enough to keep them running.
A case in point for the UK are some photos I have seen of National Coal Board locos in their last days, these locos were any color one liked, as long as it was coal black!
