Vehicle-to-infrastructure and vehicle-to-vehicle communications has been introduced to provide high rate Internet connectivity to vehicles to meet the ubiquitous coverage and increasing high-data rate internet and multimedia demands by utilizing the 802.11 access points (APs). In order to evaluate the performance of vehicular networks over WLAN, in this paper, we investigate the transmisison and network performance of vehicles that pass through AP by considering contention nature of vehicles over 802.11 WLANs. Firstly, we derived an analytical traffic model to obtain the number of vehicles under transmision range of an AP. Then, incorporating vehicle traffic model with Markov chain model and for arrival packets, M/G/1/K queuing system, we developed a model evaluating the performance of DCF mechanism with an optimal retransmission number. We also derived the probability of mean arrival rate l to AP. A distinctive aspect of our proposed model is that it incorporates both vehicular traffic model and backoff procedure with M/G/1/K queuing model to investigate the impact of various traffic load conditions and system parameters on the vehicular network system. Based on our model, we show that the delay and througput performance of the system reduces with the increasing vehicle velocity due to optimal retransmision number m, which is adaptively adjusted in the network with vehicle mobility.