Holy chit. What does this guy think happens when you put something in the loop of an inductor that increases or decrease the core permability. Does he think when a car sits on top of it that it injects a signal at near the operating frequency? lol Clueless. It's unrelated to the magnets magnetic field, it would work equally well in a relaxed state with no field, it's just being used as high permeability core material for the inductor.
Straight from the inductor article on wikipedia:
" For example, the magnetic flux linking these turns can be increased by coiling the conductor around a material with a high permeability such as iron. This can increase the inductance by 2000 times."
You pick the material with the highest permeability you can find, and you put it as low, and ideally as centered in the loop as possible, though it doesn't make a lot of difference as long as you're inside the loop.
What material has the highest permeability?
Mu-metal.
And using Mu-Metal rather than a magnet (which also has good permeability) avoids having a bunch of things stick to it.
10grams of Mu-Metal can have the same inductive effect as a 200Kg of steel sitting over the sensor.
Your goal is to alter the resonate point of the coil. That's how it knows something is there. Coil some wire up, measure the inductance, slip in a chunk of magnet or a kitchen fork or mu-metal, or whatever the hell you want with permeability, re-measure inductance, it changes, this makes the resonate point change and it knows a car is there. I've done these tests before with my motorcycle, and anyone else here can duplicate it in 10mins. Find a light with no traffic. Set a hard drive magnet in the coil. Watch it change.