This paper presents the test results of small dipstick-gage-type engine-oil-deterioration-detection sensor. The measured sensor signal characteristics for the capacitance and temperature are analyzed. The engine oil deterioration condition correlates with the electrical property of the dielectric constant that comprised with physical properties such as TAN (Total Acid Number), TBN (Total Base Number) and viscosity. Several problems encontered during the test of the sensor system are improved. The results of vehicle tests show that the capacitance signal is stable after the engine stops. Therefore, the sensor should start measuring the parameters for monitoring the engine oil condition after the engine stops. The engine is considered to be in a stopped state if the difference between the maximum and minimum values of the oil capacitance measured every 1 min is below 0.02 pF. The key test results in this paper will help in the development of an engine oil change warning algorithm.