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Below the Media Access Control (MAC) layer is the Physical (PHY) layer which deals with the actual transmission of the bits received from the MAC layer above into electromagnetic signals. This layer is optimized to implore power management in wireless networks. Power management is a crucial issue in wireless and mobile networks. In this paper, we propose an Adaptive ContextAware Rate Selection (ACARS) algorithm to handle the issue of power consumption in wireless networks. This algorithm is implemented by optimizing the PHY layer to transmit efficiently as the number of nodes changes and we estimate the Signal-to-Noise Ratio (SNR) to the PHY layer.Results show that by using the appropriate power management technique, ACARS is reliable and efficient for power consumption in wireless networks which is a high demand for vehicular networks.