The electronic compass such as Wayfinder uses a patented magnetic sensor technology that was first developed by
PNI, Inc. for the U.S. military. This technology is called "
magneto-inductive"
and is the largest advancement in compass technology since the
fulxgate was invented 60 years ago. The
magneto-inductive technology is able to electronically
sense the difference in the earth's magnetic field from a disturbance caused by external elements such as ferro-magnetic materials and the magnetic field generated by automobile electrical systems. WayFinder digital compass has an embedded micro controller that subtracts the automobile magnetic field
(the distortion) from the stronger earth magnetic fields resulting
in a highly accurate compass reading.

Compass Installation
The performance of a compass will greatly depend on its installation
location. A compass relies on the earth’s magnetic field
to provide heading. Any distortions of earth magnetic field by
other sources such as a car massive iron components should
be compensated for in order to determine an accurate heading.
Sources of magnetic fields in any automobile include permanent
magnets mostly in its audio speakers, motors, electric currents flowing in its wiring—either dc or ac, and
ferro-magnetic metals such as steel or iron. The influence of
these sources of interference on an electronic compass accuracy can be greatly reduced by placing
the compass far away from them.
Some of the field effects can be compensated by way of calibrating
the compass for a defined location in terms of magnetic interference.
However, it is not always possible to compensate for time varying
magnetic fields; for example, disturbances generated by the motion
of magnetic metals, or unpredictable electrical current in a nearby
power lines. Magnetic shielding can be used for large field disturbances
from motors or audio speakers. The best way to reduce disturbances
is distance. Also, never enclose the compass in a magnetically
shielded metallic housing.
Compass
Tilt Errors
Heading errors due to a tilt depend somewhat on geographic
location. At the equator, tilt errors are less critical since
the earth's field is strictly in the horizontal plane. This provides
larger X and Y readings and little of the Z component correction near
the magnetic poles, tilt errors are extremely important—since there
is less X,Y field and more of the Z component. Tilt errors are also dependent
on the heading.
Magnetic
Field Distortions
Nearby Ferrous materials is another consideration for heading
inaccuracy. Since heading is based on the direction of the earth's
horizontal field a digital compass must be able to measure this
field with lesser influence from other nearby magnetic sources or
disturbances.
The amount of disturbance depends on the material content of the
platform and connectors as well as ferrous objects moving nearby.

When a ferrous object is placed in a uniform magnetic field it will create disturbances
as shown in this figure. This object could be a steel bolt or bracket near the compass or an iron door
latch close to the compass. The net result is a characteristic
distortion, or anomaly to the earth’s magnetic field that
is unique to the shape of the object.
Magnetic distortions can be categorized as two types—
hard
iron and
soft iron effects. Hard iron distortions
arise from permanent magnets and magnetized iron or steel on the
compass platform. These distortions will remain constant and in
a fixed location relative to the compass for all heading orientations.
Hard iron effects add a constant magnitude field component
along each axes of the sensor output.
This appears as a shift
in the origin of the circle equal to the hard iron disturbance
in the Xh and Yh axis
To compensate for
hard iron distortion is usually done
by rotating the compass and platform (your car) in a circle and
measure enough points on the circle to determine this offset.
Once found, the (X,Y) offset can be stored in memory and subtracted
from every reading. The net result will be to eliminate the hard
iron disturbance from the heading calculation.
The
soft iron distortion arises from the interaction of the earth’s
magnetic field and any magnetically soft material surrounding
the compass. Like the
hard iron materials, the soft metals
also distort the earth’s magnetic field lines. The difference
is the amount of distortion from the
soft iron depends
on the compass orientation.
What Is True North?
It
is well known that the earth's magnetic poles and its axis of
rotation are not at the same geographical location. They are about
11.5° rotation from each other. This creates a difference
between the true north, or grid north, and the magnetic north,
or direction a magnetic compass will point. Simply it is the angular
difference between the magnetic and true north expressed as an
Easterly or Westerly variation. This
difference is defined as the variation angle and is dependent
on the compass short duration, making a magnetic compass a useful
navigation tool.
Compass Calibration
Each calibration method is associated with a specified physical
movement of the compass platform in order to sample the magnetic
space surrounding the compass. The Hard and Soft iron distortions
will vary from location to location within the same platform.
The compass has to be mounted permanently to its platform to get
a valid calibration.
A
particular calibration is only valid for that location of the
compass. If the compass is re-oriented in the same location, then
a new calibration is required. It is possible to use a compass
without any calibration if the need is only for repeatability
and not accuracy.