In this paper, we propose a parking allocation model that takes into account the basic constraints and objectives of a problem where parking lots are assigned to vehicles. We assume vehicles are connected and can exchange information with a central intelligence. Vehicle arrival times can be provided by a GPS device, and the estimated number of available parking slots, at each future time moment and for each parking lot is used as an input. Our initial model is static and may be viewed as a variant of the generalized assignment problem. However, the model can be rerun, and the algorithm can handle dynamic changes by frequently solving the static model, each time producing an updated solution. In practice this approach is feasible only if reliable quality solutions of the static model are obtained within a few seconds since the GPS can continuously provide new input regarding the vehicle’s positioning and its destinations. We propose a 0–1 programming model to compute exact solutions, together with a variable neighborhood search-based heuristic to obtain approximate solutions for larger instances. Computational results on randomly generated instances are provided to evaluate the performance of the proposed approaches.