A non-contacting sensor assembly including a connector assembly and a magnet assembly. The connector assembly includes a sensor coupled directly to the end of the terminals of the connector assembly. A sleeve is overmolded around and seals the sensor and the terminals. A capacitor is soldered in a recess in the terminals. The terminals include flexible regions, such as regions of reduced thickness, which reduce the effects of thermal expansion/contraction stresses on the solder. In one embodiment, the sensor assembly is a rotary position sensor assembly in which the magnet assembly is molded into a rotatable drive arm assembly located in a housing, the connector assembly is coupled to the housing, and the sensor extends into the housing and into adjacent relationship with the magnet assembly.