Internet of Things (IoT) and Vehicular Ad hoc NETwork (VANET) based clouds are two emerging technologies and offer myriad of new applications in many domains of smart cities including, but not limited to, smart infrastructure and intelligent transportation. Integration of these technologies will enrich the applications and services space that will eventually stimulate the proliferation of these technologies. Nonetheless, due to their different requirements, environments, and networking models, such integration will need definitions of new communication paradigms and frameworks. To fill the voids, in this paper, we propose an architectural framework to integrate vehicular clouds (VC) and IoT, referred to as IoT-VC, to realize new services and applications that include IoT management through vehicular clouds. We particularly focus on smart city applications controlled, managed, and operated through vehicular networks. This theoretical work provides initial insights into data management in such diverse paradigm with resource constrained environment. Furthermore, we also discuss research challenges in such integration that include data acquisition, data quality, security, privacy, coverage, and so forth. These challenges must be addressed for realization of IoT-VC paradigm.