City received an early blow when they lost defender Paul Linwood to injury during the warm-up, with teenager Kevin Roberts coming in to replace him.
The visitors started nervously and had an early scare when keeper John Danby spilled the ball under pressure from Daggers striker, Paul Benson, in the third minute, only for Roberts to thump the ball clear.
Danby was finally beaten in the 15th minute when teenage Daggers forward, Dominic Green, curled a delicious free-kick into the top left-hand corner of the net from the edge of the box to give his side the lead.
Striker, Ben Strevens, doubled Dagenham's advantage from the penalty spot in the 40th minute after Benson was scythed down in the box by Roberts.
City nearly hit back immediately through Lowe, who saw his close range 44th minute header palmed away acrobatically by Daggers keeper Tony Roberts.
Danby made up for his earlier errors on the stroke of half-time when he blocked at the feet of Daggers full-back, Scott Griffiths, and then Benson, in the space of a minute.
Saunders made it three in the 55th minute, when his speculative 35 yard cross deceived the City defence and flew over Danby, into the net.
Defeat turned to farce for City five minutes later when Saunders pounced on a poor clearance from Roberts on the edge of the box, before smashing it past the stranded keeper for the fourth.
Strevens should have made it five in the 70th minute when Green slid him in on goal, only for the striker to blast straight at Danby from point-blank range.
Benson rubbed salt into the wound in the 80th minute when his deflected shot wrong-footed Danby and bounced into the net for goal number five.
New Daggers signing, Mark Nwokeji, came off the bench to make it six in the 86th minute, but by then City were already dead and buried.