Do you recall the feeling of the dream? Happiness, sadness, fear, patience, impatience, etc.

Well my first thought is that it's something repetitive, something looping. It's repetitive both in the sense the VW keeps flying around and around, and also it's a recurring dream.

Another thought is that it's a kind of children's fantasy... a flying car.

You said initially that you were just watching it, but you said later you were ducking. I imagine there was some of each. In either case there's a kind of passivity... you are not the one doing the flying, but observing. It makes me think about how children have little power compared to the adults in their lives. A child must sometimes "duck" to stay out of the way of adults who are insensitive to the needs of the child. It's possible there was some pattern in your life that required you to continually duck out of the way of the adults, something that felt like it was "on a loop."

You seem to associate VW Beetles with your mother, as she owned several.

I don't know what to make of it being red. I don't have much experience with interpreting colors. I don't really think stock interpretations of colors are all that useful either. For example some people would say red is either anger or passion. I don't know if that is always true.