There are a number of different ways you can implement a default route in IOS. The method you choose depends on the circumstances (routing protocol used, equipment being configured, etc.) and your design goals (such as static vs. dynamic routing.)
ip default-gateway
The ip default-gateway command only works on a device not running IP routing. The most common uses of this command are L2 switches and access points, although it could theoretically be used on something like a voice gateway with only one connection, and the no ip routing command configured. Frankly, I cannot think of any advantage or doing this over a static route. Continue reading