Vehicular Delay-Tolerant Networks (VDTNs) are characterized by high node mobility, intermittent connectivity, and short contact durations. Such factors cause incomplete transmissions and the waste of link capacity. To address these issues, this paper explores the use of node localization in VDTNs. The exchange of signaling information related to nodes’ real-time location, current trajectory, velocity, and transmit range allows a Contact Prediction Algorithm to estimate contact durations. This information can be used in conjunction with additional signaling information (e.g. link data rate), to determine the maximum number of bytes that can be transmitted during contact opportunities. A Contact Duration Scheduling Policy can use this information to prevent incomplete transmissions, while increasing the number of successfully relayed bundles and improving data link utilization. Through a simulation study, we investigate the benefits of introducing the concept of node localization, and evaluate the performance of the proposed Contact Prediction Algorithm and Contact Duration Scheduling Policy. We demonstrate the gains introduced by this approach in comparison with an environment where VDTN nodes have no access to localization information.