This is the letter I got from my salesman today. It says that extended coverage is going up by about 500 dollars.

June 8, 2007
Dear Piotr xxxxxxxx,
Your 2007 BMW 335i came standard with the industry-leading BMW Maintenance Program – a premium, no-cost plan covering a factory-recommended maintenance for four years or 50,000 miles, whichever comes first.
Because we’re committed to enhancing your ownership experience at Russel BMW, we thought you should know that as long as your 2007 BMW 335i is still covered by the standard BMW Maintenance Program, you have the opportunity to extend this valuable protection for up to an additional two years or 50,000 miles with the purchase of the BMW Maintenance Program Upgrade. Affordable and backed by BMW, it makes for total coverage up to six years or 100,000 miles, whichever comes first. It offers you unparalleled peace of mind. It provides coverage for all major maintenance services, brake pads, brake rotors, oil changes, outside engine belts, and wiper blade refills. The coverage is transferable.
BMW’s pricing on the Maintenance Program Upgrade will increase on June 18, 2007. This is your opportunity to take advantage of this valuable service before prices increase by an average of $500.
If you’d like to learn more about the BMW Maintenance Program Upgrade, please give us a call at 800-828-6529 or 410-744-2000 and ask to speak to a Service Advisor or Richard Meckel, Business Director, at extension 3304

I bought my car on May 31st. The 500 dollar increase was effective as of June 1st per 2 or 3 dealers I spoke to. Maybe that dealer is offering some extension, or BMW is now offering one. Anyhow, I bought mine on May 31st so I had no worries. I think it's a good thing to have, even if you sell the car, it adds value to the vehicle.

One dealer commented that bmw prices are going up everywhere because the euro is kickin usd's ass. He also used that to justify not doing the ED.

What always makes me laugh at this stuff, if the actual prices are never told.. Just "it's going up"... What's the price? Just say it's going up to $2000 or is it $1500 or something else... Why charge different prices for different people... Be upfront and honest... The custoemrs will come...

What always makes me laugh at this stuff, if the actual prices are never told.. Just "it's going up"... What's the price? Just say it's going up to $2000 or is it $1500 or something else... Why charge different prices for different people... Be upfront and honest... The custoemrs will come...
"honest", I think Websters is planning to take this word out of their dictionary. It is a shame how prevalent dishonesty has become, I am shocked when meeting truely honest people.

It's my understanding that these packages are negotiable. So what does "going up in price" really mean???

Yeah, they definatley are negotiable.... but without knowing MSRP, were do the negotiations start... from seeing prices quoted on this and other forums, I've seen a wide range of prices on each of the maintenance packages...
it's like the scheduled maintenance... not listed anywhere in easily accessible documentation - but back in the days when it wasn't free, it was posted everywhere... BMW - Focus on customer service, honesty, and you'll win even more of the market share out there....

I've seen a lot of prices floating around also. I'd do a little research and start at the low end. I've never purchased one of these myself. I would wait until the current coverage was close to ending first though before considering it.