Vehicu lar Ad Hoc network is a versatile mobile wireless Ad-Hoc network targeted to support traffic mon itoring, vehicu lar safety and many more applications. For the robust and reliab le services in the VA NET there is need to investigate the performance under frequent handovers in Mobile IP to prevent packet loss. Mobile IP is an interface that helps to track the mobile nodes and deliver messages even if vehicles are out of the coverage area of home node. In order to find the achievable performance bounds in terms of throughput, packet drop, collision rate and packet broadcast rate, extensive simulat ions have been done. A realistic city scenario has been proposed here by using the Rayleigh channel simulator, mob ile IP enabled IEEE 802.11p OBUs and RSUs. The transmission powers of RSUs and threshold power levels have been varied to obtain the optimu m performance through realistic conditions. Simulat ions are performed using NCTUns6.0 (National Ch iao Tung University Network Simu lator) in mobile IP interface.