Zipcode Algorithm

I am trying to write one.Are there any tools that I need to use to write it?(may be mapPoint?)I think that there are two ways to write the appication:Having database of all my dealers, each with latitude and longtitude.when the customer eneters his zip code, then I need to calculate how many dealers are in that area. I am trying to find some hints or script.

Having database of all my dealers. One table will have the dealers, the other table will have zip codes that each dealer service (some zipcodes have more than one dealer that service them, some dealers have many zipcodes that they service). Then when the customer enters his zipcode, i will use a query to find all dealers that service this zipcode?

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Zipcode Lookup

Looking for a source for data and/or algorithm that would allow me to enter
a zipcode and find - in our case - every car dealership that sells, say,
Chevy's in that zipcode - if not there, then what about adjacent
zipcodes..? - in an ever expanding circle outward, and return a list of
those zipcodes.
In my database, I've already got the car dealers and available makes. What
I need is the zipcode "map" reference.

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