Don't discount 06+ cars just because of the VED, as that's a minuscule cost of owning the car over a year. It's roughly the equivalent to an extra pint of beer every week, and for me the driving experience with an extra 500rpm to play with is massively worth it. Also you get the significantly better interior & MUCH better headlights, well worth it on it's own.
Of course, if you can't afford an 06+ car in the first place then the point is moot, but if you can I'd strongly urge you to consider one.