You can create marvellous models using just your hands but there are some tools and equipment that I just wouldn't be without:
Any decent pasta machine will do the job but I use an Eberhard Faber machine. It has three settings but I only use the 'sheet' setting at differing thicknesses. It is absolutely invaluable as it can be used to condition clay and to blend colours together. It generates sheets of clay at a uniform thickness. If you buy nothing else, get one of these!!

Buying a clay extruder changed my life! I love my Makin's extruder. They don't come cheap but are excellent in creating hair for my models. I had an extruder that had a plunge tool to extrude, but this has a screw action which is much easier on the hands. Well worth buying.
I use a number of different cutting tools. I have an ordinary stanley style knife which I use to cut pieces of clay from large blocks. For my detailed work I use a professional scalpel from Swann Morton. I like the number 3 handle and blades. These come with replacement blades and it is important to change blades regularly to keep them nice and sharp.