This work focuses on the vehicle-to-vehicle (V2V) communication, its current challenges, future perspective and possible improvement.V2V communication is characterized by the dynamic environment, high mobility, nonpredective scenario, propagation effects, and also communicating antenna's positions. This peculiarity of V2V wireless communication makes channel modelling and the vehicular propagation quite challenging. In this work, firstly we studied the present context of V2V communication also known as Vehicular Ad-hoc Netwok (VANET) including ongoing researches and studies particularly related to Dedicated Short Range Communication (DSRC), specifically designed for automotive uses with corresponding set of protocols and standards. Secondly, we focused on communication models and improvement of these models to make them more suitable, reliable and efficient for the V2V environment. As specifies the standard, OFDM is used in V2V communication, Adaptable OFDM transceiver was designed. Some parameters as performance analytics are used to compare the improvement with the actual situation. For the enhancement of physical layer of V2V communication, this work is focused in the study of MIMO channel instead of SISO. In the designed transceiver both SISO and MIMO were implemented and studied successfully.