During the procedure, a location-based service (LBS) query, the real location provided by the vehicle user may results in the disclosure of vehicle location privacy. Moreover, the point of interest retrieval service requires high accuracy of location information. However, some privacy preservation methods based on anonymity or obfuscation will affect the service quality. Hence, we study the location privacy-preserving method based on dummy locations in this paper. We propose a vehicle location privacy-preservation method based on dummy locations under road restriction in Internet of vehicles (IoV). In order to improve the validity of selected dummy locations under road restriction, entropy is used to represent the degree of anonymity, and the effective distance is introduced to represent the characteristics of location distribution. We present a dummy location selection algorithm to maximize the anonymous entropy and the effective distance of candidate location set consisting of vehicle user’s location and dummy locations, which ensures the uncertainty and dispersion of selected dummy locations. The proposed location privacy-preservation method does not need a trustable third-party server, and it protects the location privacy of vehicles as well as guaranteeing the LBS quality. The performance analysis and simulation results show that the proposed location privacy-preservation method can improve the validity of dummy locations and enhance the preservation of location privacy compared with other methods based on dummy locations.